Jacobs Solutions Inc. (J)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 4.10 | 6.74 | 4.43 | 4.59 | 4.27 |
| Payables turnover | 10.73 | 16.88 | 14.77 | 14.92 | 12.51 |
| Working capital turnover | 14.31 | 12.92 | 10.25 | 13.16 | 8.46 |
Inventory turnover is not provided in the table.
Receivables turnover for Jacobs Solutions Inc. has fluctuated over the past five years, ranging from 4.10 in 2024 to 6.74 in 2023. This ratio indicates that the company collected its accounts receivable approximately 4.10 times in 2024, showing a slight decrease from the previous year.
Payables turnover has also shown variability, with values ranging from 10.73 in 2024 to 12.51 in 2020. This ratio suggests that Jacobs Solutions paid its accounts payable approximately 10.73 times in 2024, indicating an improvement in managing its trade payables.
Working capital turnover has increased consistently over the years, reflecting the company's ability to generate revenue relative to its working capital. In 2024, the ratio reached 14.31, up from 8.46 in 2020, indicating a significant improvement in utilizing its working capital efficiently.
Overall, Jacobs Solutions Inc. has shown fluctuations in receivables and payables turnover ratios, highlighting changes in its collection and payment cycles. The increasing trend in working capital turnover signifies the company's effectiveness in generating revenue based on its working capital resources.
Average number of days
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 88.95 | 54.18 | 82.39 | 79.49 | 85.52 |
| Number of days of payables | days | 34.02 | 21.63 | 24.70 | 24.47 | 29.17 |
Based on the data provided for Jacobs Solutions Inc., the activity ratios reveal important insights into the company's efficiency in managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
Unfortunately, the information for Days of Inventory on Hand is missing for all the years. This ratio helps in assessing how quickly inventory is sold or used by the company and can be indicative of inventory management efficiency.
2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding ratio indicates the average number of days it takes for Jacobs Solutions Inc. to collect payment after making a sale. The trend shows an increase in DSO from 54.18 days in 2023 to 88.95 days in 2024, which suggests a slower collection of receivables. This may indicate potential issues with credit policies or the financial health of customers.
3. Number of Days of Payables:
The Number of Days of Payables ratio reflects the average number of days it takes for Jacobs Solutions Inc. to pay its suppliers. The trend shows fluctuations in this ratio, with an increase from 21.63 days in 2023 to 34.02 days in 2024. A longer payment period may signal improved cash flow but could also strain relationships with suppliers if not managed effectively.
In conclusion, while specific interpretations for the Days of Inventory on Hand are not available, the analysis of Days of Sales Outstanding and Number of Days of Payables indicates areas that may require further attention to optimize working capital management and overall operational efficiency at Jacobs Solutions Inc.
Long-term
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 36.99 | 58.54 | 43.51 | 40.33 | 42.33 |
| Total asset turnover | 0.99 | 1.12 | 1.03 | 0.97 | 1.09 |
Jacobs Solutions Inc.'s long-term activity ratios provide insight into the company's efficiency in utilizing its assets to generate sales revenues.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate sales.
- Jacobs Solutions Inc. experienced fluctuations in its fixed asset turnover ratio over the past five years, ranging from 36.99 in 2024 to 58.54 in 2023.
- A high fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales, which can be positive. However, rapid fluctuations in this ratio may warrant further investigation into the reasons behind these variations.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently a company is using all its assets to generate sales revenue.
- Jacobs Solutions Inc. exhibited a declining trend in its total asset turnover ratio over the past five years, with the ratio decreasing from 1.09 in 2020 to 0.99 in 2024.
- A decreasing total asset turnover ratio may suggest that the company's asset utilization efficiency has declined over the years, which could be a cause for concern.
Overall, Jacobs Solutions Inc. should analyze the factors contributing to the fluctuations in its fixed asset turnover and the declining trend in its total asset turnover to identify areas for improvement in asset utilization efficiency and operational effectiveness.