Jacobs Solutions Inc. (J)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,561.73 | 10,556.15 | 4,661.35 | 10.08 |
| Receivables turnover | 4.53 | 4.58 | 4.47 | 4.43 | 4.47 | 4.40 | 4.49 | 4.42 | 4.78 | 4.59 | 4.37 | 4.17 | 4.07 | 4.21 | 4.20 | 4.10 | 4.26 | 4.46 | 4.83 | 5.25 |
| Payables turnover | 14.26 | 13.56 | 13.77 | 15.16 | 15.63 | 14.72 | 14.78 | 14.89 | 16.70 | 14.85 | 14.83 | 14.70 | 13.12 | 12.41 | 10.10 | 10.29 | 9.98 | 9.37 | 14.24 | 15.78 |
| Working capital turnover | 12.51 | 12.85 | 10.45 | 9.19 | 9.81 | 10.19 | 10.88 | 15.74 | 11.48 | 13.16 | 9.30 | 8.21 | 7.00 | 8.34 | 7.03 | 5.12 | 8.41 | 12.20 | 11.31 | 8.70 |
Jacobs Solutions Inc.'s activity ratios provide insights into how efficiently the company is managing its assets and operations.
1. Inventory Turnover:
Inventory turnover measures how many times a company's inventory is sold and replaced over a period. Jacobs Solutions Inc. experienced fluctuations in its inventory turnover ratio over the periods provided, with a significant increase from the end of December 2019 to September 2019. The company's inventory turnover ratio improved from 10.08 in December 2019 to 10,556.15 in September 2019, indicating a more efficient management of inventory during this period.
2. Receivables Turnover:
Receivables turnover ratio indicates how many times a company collects its accounts receivable during a period. Jacobs Solutions Inc.'s receivables turnover ratio remained relatively stable over the periods, ranging between 4.07 and 5.25. This indicates that the company is efficiently collecting its accounts receivable within a reasonable timeframe.
3. Payables Turnover:
Payables turnover ratio reflects how many times a company pays its suppliers during a period. Jacobs Solutions Inc. experienced fluctuations in its payables turnover ratio, with the ratio varying between 9.37 and 16.70. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, potentially indicative of a strong supplier relationship or efficient cash management.
4. Working Capital Turnover:
Working capital turnover ratio shows how efficiently a company is utilizing its working capital to generate revenue. Jacobs Solutions Inc.'s working capital turnover ratio varied over the periods, ranging from 5.12 to 15.74. A higher working capital turnover ratio indicates that the company is generating more revenue per unit of working capital, reflecting efficient operations.
Overall, Jacobs Solutions Inc.'s activity ratios demonstrate varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the periods provided. It is crucial for the company to monitor these ratios to identify strengths and areas for improvement in its financial management and operational efficiency.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.14 | 0.03 | 0.08 | 36.23 |
| Days of sales outstanding (DSO) | days | 80.62 | 79.76 | 81.59 | 82.38 | 81.72 | 82.94 | 81.23 | 82.67 | 76.37 | 79.49 | 83.48 | 87.63 | 89.67 | 86.72 | 86.91 | 89.06 | 85.71 | 81.86 | 75.62 | 69.54 |
| Number of days of payables | days | 25.60 | 26.92 | 26.50 | 24.08 | 23.35 | 24.80 | 24.70 | 24.51 | 21.86 | 24.58 | 24.62 | 24.83 | 27.82 | 29.40 | 36.16 | 35.46 | 36.59 | 38.96 | 25.63 | 23.13 |
Jacobs Solutions Inc.'s activity ratios provide insight into how efficiently the company manages its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH): The company's DOH has been inconsistently reported, with missing data in some periods. However, in December 2019, inventory turnover was extremely high at 36.23 days, indicating that the company's inventory was turning over very quickly. The sudden change to zero days in inventory turnover may indicate a shift in reporting practices or operational changes.
2. Days of Sales Outstanding (DSO): Jacobs Solutions Inc.'s DSO fluctuated over the periods analyzed. DSO measures how long it takes for the company to collect payment from its customers. Higher DSO values indicate that the company is taking longer to collect its receivables, potentially affecting its cash flow and liquidity. The DSO reached a peak of 89.67 days in March 2021, but showed improvement to 75.62 days by September 2021, indicating a more efficient collection process.
3. Number of Days of Payables: The number of days of payables shows how long it takes the company to pay its suppliers. A higher number of days indicates that the company is taking longer to settle its payables, which can sometimes indicate favorable credit terms. Jacobs Solutions Inc.'s payables turnover has varied, with a notable increase from 23.35 days in December 2019 to 36.59 days in March 2020, potentially suggesting a change in payment terms or supplier relationships.
In summary, Jacobs Solutions Inc. should monitor its activity ratios consistently to ensure optimal management of its inventory, receivables, and payables, which can have a significant impact on the company's financial performance and liquidity.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 47.11 | 45.61 | 42.07 | 42.46 | 43.06 | 43.23 | 45.27 | 44.65 | 43.52 | 40.33 | 39.25 | 38.17 | 41.79 | 41.74 | 38.21 | 39.42 | 42.16 | 41.10 | 43.94 | 53.65 |
| Total asset turnover | 1.11 | 1.11 | 1.07 | 1.04 | 1.03 | 1.02 | 1.01 | 0.96 | 0.97 | 0.97 | 0.92 | 0.88 | 1.04 | 1.08 | 1.05 | 0.99 | 1.07 | 1.10 | 1.15 | 1.11 |
Jacobs Solutions Inc.'s fixed asset turnover ratio has been relatively consistent over the past five quarters, ranging from 38.17 to 53.65. This indicates that the company efficiently utilizes its fixed assets to generate sales. The higher values suggest that the company is effectively using its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio for Jacobs Solutions Inc. has fluctuated, ranging from 0.88 to 1.15 over the same period. This ratio measures the company's ability to generate sales from its total assets. The fluctuations may indicate changes in the company's asset management efficiency or fluctuations in sales volume relative to total assets.
Overall, the analysis of Jacobs Solutions Inc.'s long-term activity ratios suggests that the company has been effectively utilizing its fixed assets to generate revenue, while also showing variability in its ability to generate sales from its total assets. Further analysis and comparison with industry benchmarks may provide more insights into the company's efficiency and performance in utilizing its assets.