Jacobs Solutions Inc. (J)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | 10,778.15 |
| Receivables turnover | 4.60 | 4.43 | 4.59 | 4.27 | 4.48 |
| Payables turnover | 13.61 | 14.77 | 14.92 | 12.51 | 9.57 |
| Working capital turnover | 12.92 | 10.25 | 13.16 | 8.46 | 12.27 |
Jacobs Solutions Inc.'s activity ratios provide insights into the efficiency of the company's operations over the past five years.
1. Inventory Turnover: The data for this ratio is not available for the latest year. In 2019, the company's inventory turnover was very high at 10,778.15 times, indicating that the company sold through its inventory more than 10,000 times during that year.
2. Receivables Turnover: The receivables turnover ratio has shown a relatively consistent performance over the past five years, ranging from 4.27 to 4.60. This suggests that the company collects its accounts receivables approximately 4 to 5 times each year, indicating a steady management of its credit sales.
3. Payables Turnover: The payables turnover ratio has fluctuated over the years, with values ranging between 9.57 and 14.92. A higher turnover ratio for payables indicates that the company is paying its suppliers more frequently. The increase in the ratio over the years could be due to negotiations with suppliers for better payment terms or changes in the company's cash flow management.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales. Jacobs Solutions Inc. has shown variations in this ratio over the years, with the highest turnover seen in 2021 at 13.16. This indicates that the company generated sales over 13 times the amount of its working capital during that year.
In conclusion, Jacobs Solutions Inc. has displayed varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the past five years. The data provided suggests that the company has been actively managing its resources to optimize its operational activities.
Average number of days
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 0.03 |
| Days of sales outstanding (DSO) | days | 79.31 | 82.39 | 79.49 | 85.52 | 81.39 |
| Number of days of payables | days | 26.82 | 24.70 | 24.47 | 29.17 | 38.16 |
Jacobs Solutions Inc.'s activity ratios indicate how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH): The company's DOH data is missing for the last five years, except for 2019 where it was only 0.03 days. This suggests that the company rapidly turns over its inventory, possibly indicating effective inventory management and avoiding excess inventory holding costs. However, without recent data, it's challenging to provide a trend analysis.
2. Days of Sales Outstanding (DSO): Jacobs Solutions Inc.'s DSO has fluctuated over the years, with a decrease in 2023 to 79.31 days from 85.52 days in 2020. A decrease in DSO indicates the company is collecting its receivables more quickly, which can improve cash flow and working capital management. It is essential to monitor this trend to ensure continued efficiency in collecting outstanding payments.
3. Number of Days of Payables: The number of days of payables has decreased steadily from 38.16 days in 2019 to 26.82 days in 2023. A lower number of days of payables generally means the company is paying its suppliers more quickly. While this may reflect good relations with suppliers, it is essential to strike a balance between early payments and preserving cash flow.
In conclusion, Jacobs Solutions Inc. has shown improvement in its days of sales outstanding and days of payables, indicating enhanced efficiency in receivables and payables management. However, the missing data for days of inventory on hand limits a comprehensive analysis of the company's overall activity ratios. Further monitoring and analysis of these ratios will provide a more holistic view of the company's operational efficiency.
Long-term
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 45.87 | 43.51 | 40.33 | 42.33 | 41.34 |
| Total asset turnover | 1.12 | 1.03 | 0.97 | 1.09 | 1.11 |
Based on the provided long-term activity ratios for Jacobs Solutions Inc., we can observe the following trends:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets.
- Jacobs Solutions Inc. has shown a consistent improvement in this ratio over the past five years, indicating an increasing efficiency in generating sales from its fixed assets.
- The company's fixed asset turnover has increased from 41.34 in 2019 to 45.87 in 2023, signifying a positive trend in asset utilization.
2. Total Asset Turnover:
- The total asset turnover ratio gauges how well a company utilizes its total assets to generate revenue.
- While there have been fluctuations in this ratio over the past five years for Jacobs Solutions Inc., the overall trend shows a moderate performance in asset utilization.
- The total asset turnover ratio ranged from a low of 0.97 in 2021 to a high of 1.12 in 2023, reflecting some variability in the company's efficiency in generating sales relative to its total assets.
In conclusion, Jacobs Solutions Inc. has demonstrated an improving efficiency in utilizing its fixed assets to generate revenue, as evidenced by the increasing trend in the fixed asset turnover ratio. However, there have been some fluctuations in the total asset turnover ratio, indicating varying levels of efficiency in utilizing total assets to generate sales. Overall, a closer examination of the company's asset management strategies may provide further insights into optimizing asset utilization for sustainable growth and profitability.