KBR Inc (KBR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 6.74 | 6.72 | 5.06 | 6.26 | 5.78 |
| Payables turnover | 11.14 | 9.88 | 6.90 | 8.89 | 8.72 |
| Working capital turnover | 86.51 | — | 26.17 | 32.22 | 11.06 |
Inventory turnover data is not available in the provided table.
Receivables turnover ratio for KBR Inc has been relatively stable over the past five years, ranging from 5.06 to 6.74. This indicates that the company is efficient in collecting its accounts receivable, with a higher turnover ratio being generally favorable.
Payables turnover ratio for KBR Inc has shown an increasing trend over the years, from 8.72 in 2019 to 11.14 in 2023. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate good relationships with suppliers or efficient cash management.
Working capital turnover ratio for KBR Inc has significantly improved over the years, showing strong growth from 11.06 in 2019 to 86.51 in 2023. This indicates that the company is generating more revenue per dollar of working capital, reflecting efficient utilization of resources to drive sales.
Overall, based on the activity ratios provided, KBR Inc appears to have favorable efficiency metrics in terms of receivables turnover, payables turnover, and working capital turnover, showcasing effective management of its working capital and operational processes.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 54.16 | 54.28 | 72.10 | 58.29 | 63.11 |
| Number of days of payables | days | 32.75 | 36.93 | 52.86 | 41.07 | 41.87 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate sales. Let's analyze KBR Inc's activity ratios based on the provided data:
1. Days of Inventory on Hand (DOH): Unfortunately, there is no data available for this ratio for the years reported. The DOH ratio indicates the number of days it takes for a company to sell its inventory. A lower DOH ratio is generally preferable as it indicates efficient inventory management.
2. Days of Sales Outstanding (DSO): KBR Inc's DSO has fluctuated over the past five years, with the highest value recorded in 2021 at 72.10 days and the lowest in 2023 at 54.16 days. DSO represents the average number of days it takes for a company to collect revenue after a sale. A lower DSO is typically better as it indicates that the company is collecting payments more quickly.
3. Number of Days of Payables: KBR Inc's number of days of payables has also varied over the years, with the lowest value in 2023 at 32.75 days and the highest in 2021 at 52.86 days. This ratio indicates the average number of days it takes for a company to pay its suppliers. A higher number of days of payables may suggest that the company is taking longer to pay its bills, which could be beneficial for cash flow management.
Overall, KBR Inc's activity ratios show some fluctuation over the years, indicating changes in the company's efficiency in managing inventory, collecting revenue, and paying suppliers. Further analysis and comparison with industry benchmarks would provide a clearer picture of KBR Inc's performance in these areas.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 28.59 | 35.69 | 53.30 | 44.36 | 43.38 |
| Total asset turnover | 1.23 | 1.17 | 1.17 | 1.01 | 1.05 |
The fixed asset turnover ratio measures how effectively a company is generating revenue from its fixed assets. KBR Inc's fixed asset turnover has shown a decreasing trend over the past five years, dropping from 53.30 in 2021 to 28.59 in 2023. This indicates that the company is generating lower sales relative to its investment in fixed assets, which may be a cause for concern as it suggests decreased efficiency in utilizing its long-term assets to generate revenue.
On the other hand, the total asset turnover ratio reflects how efficiently a company is utilizing all of its assets to generate sales. KBR Inc's total asset turnover has shown some fluctuation but has generally increased over the past five years, from 1.05 in 2019 to 1.23 in 2023. This suggests that the company is improving its overall efficiency in generating sales from its total assets.
In conclusion, while KBR Inc's fixed asset turnover has been on a declining trend, indicating potential issues in utilizing its fixed assets effectively to generate revenue, the increasing trend in total asset turnover indicates that the company is becoming more efficient in generating sales from all its assets. Continued monitoring of these ratios will be essential to assess the company's long-term asset utilization efficiency.