Jacobs Solutions Inc. (J)

Short-term

Turnover ratios

Jacobs Solutions Inc.'s activity ratios provide insights into the company's operational efficiency and effectiveness in managing its assets and liabilities.

1. Receivables Turnover: The receivables turnover ratio measures how efficiently the company collects outstanding receivables from customers. The trend shows a slight fluctuation over the periods analyzed, averaging around 4.5 to 5.5 times per year. A higher turnover indicates better credit control and the ability to convert sales into cash quickly.

2. Payables Turnover: Payables turnover reflects how quickly the company pays its suppliers. The data indicates a consistent trend of paying suppliers approximately 12 to 16 times per year, showing that Jacobs Solutions manages its payables efficiently. A higher turnover suggests effective cash management and favorable payment terms with suppliers.

3. Working Capital Turnover: This ratio measures how effectively the company utilizes its working capital to generate revenue. The data suggests varying efficiency in utilizing working capital, with turnover ranging from 7 to 27 times per year. A higher turnover indicates better utilization of resources to drive sales and revenue growth.

Overall, Jacobs Solutions Inc. shows generally consistent performance in managing its receivables and payables, while the efficiency in utilizing working capital fluctuates over the periods analyzed. Further analysis of trends and industry benchmarks could provide additional insights into the company's operational efficiency and effectiveness.

---

Average number of days

Activity ratios provide insight into how efficiently a company manages its assets and liabilities to generate sales. Looking at the activity ratios of Jacobs Solutions Inc. over the past years, we can observe the following trends:

Days of Inventory on Hand (DOH): The company has consistently maintained a very low level of inventory on hand over the years, with the latest data showing 0.14 days. This suggests that Jacobs Solutions manages its inventory efficiently, minimizing excess inventory holding costs.

Days of Sales Outstanding (DSO): DSO measures how quickly the company collects its accounts receivable. Jacobs Solutions has shown variability in DSO over the periods, ranging from the mid-50s to high-80s. The decreasing trend in DSO could indicate improved efficiency in collecting payments from customers, although some fluctuations are observed.

Number of Days of Payables: This ratio reflects how long it takes for the company to pay its suppliers. Jacobs Solutions has maintained a relatively stable number of days of payables over the years, ranging from the low 20s to mid-30s. A higher number of days of payables indicates that the company takes longer to settle its payables, potentially benefiting from longer payment terms.

Overall, Jacobs Solutions Inc. demonstrates efficient management of its inventory and payables, with some variability in the collection of accounts receivable. These ratios suggest that the company has been focusing on optimizing its working capital management to support its operational activities and financial health.

---

Long-term

Jacobs Solutions Inc.'s long-term activity ratios provide insights into how efficiently the company is utilizing its assets, particularly fixed assets, to generate revenue.

The fixed asset turnover ratio has shown fluctuations over the past few quarters, ranging from a low of 38.17 to a high of 58.21. This ratio measures the company's ability to generate sales from its investment in fixed assets, such as property, plant, and equipment. A higher ratio indicates that the company is effectively utilizing its fixed assets to generate revenue. Jacobs Solutions Inc. has generally maintained a healthy fixed asset turnover ratio, indicating efficient utilization of its fixed assets to generate sales.

Total asset turnover, on the other hand, has also varied, but to a lesser extent compared to fixed asset turnover. This ratio assesses the company's ability to generate sales from its total assets, including both fixed and current assets. The total asset turnover ratio has generally been above 1.0, indicating that Jacobs Solutions Inc. is efficiently utilizing its total assets to generate revenue.

Overall, the company's long-term activity ratios suggest that Jacobs Solutions Inc. is effectively managing its assets to generate sales. However, it would be important to continue monitoring these ratios to ensure consistent efficiency in asset utilization.