Kirby Corporation (KEX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.76 | 0.67 | 1.86 | 2.68 | 1.03 |
| Receivables turnover | 4.60 | 4.41 | 5.29 | 6.89 | 7.49 |
| Payables turnover | 1.27 | 1.12 | 3.09 | 5.10 | 1.76 |
| Working capital turnover | 6.63 | 4.83 | 4.81 | 3.73 | 7.04 |
Inventory turnover is used to measure how efficiently a company is managing its inventory. A higher ratio indicates that inventory is being sold more quickly. In the case of Kirby Corp., the inventory turnover ratio has been consistently at 0.00 over the past five years, which may suggest either low sales volume or inefficiencies in managing inventory.
Receivables turnover measures how effectively a company is collecting on its credit sales. A higher ratio indicates that receivables are being collected more quickly. Kirby Corp. has shown an improving trend in receivables turnover from 3.62 in 2020 to 5.34 in 2023, indicating that the company is collecting its receivables at a faster rate.
Payables turnover measures how quickly a company is paying its suppliers. A ratio of 0.00 could indicate that the company has not provided enough information for this calculation, or that it is not making payments to suppliers during the year.
Working capital turnover measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates better utilization of working capital. Kirby Corp. has shown fluctuation in its working capital turnover ratio, with a peak of 7.04 in 2019 and a decrease to 3.73 in 2020, followed by an increase to 6.73 in 2023. This suggests varying levels of efficiency in utilizing its working capital over the years.
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 | 483.09 | 543.28 | 196.53 | 136.38 | 352.87 |
| Days of sales outstanding (DSO) | days | 79.40 | 82.71 | 69.00 | 53.00 | 48.76 |
| Number of days of payables | days | 286.39 | 327.11 | 118.08 | 71.57 | 207.64 |
Days of inventory on hand (DOH) for Kirby Corp. is not provided in the data table. This ratio is used to measure how long it takes for the company to sell its inventory. Without this information, it is difficult to assess the efficiency of Kirby's inventory management.
Days of sales outstanding (DSO) has shown a fluctuating trend over the years, starting at 62.16 days in 2019, peaking at 100.89 days in 2020, and then decreasing to 68.32 days in 2023. DSO indicates the average number of days it takes for the company to collect revenue after a sale. A decreasing trend in DSO signifies that Kirby Corp. has been able to collect its receivables more efficiently over the years, which is a positive sign.
Number of days of payables data is also missing from the table, which would have provided insights into how long Kirby takes to pay its creditors. This ratio is important for assessing the company's liquidity and relationships with suppliers.
In conclusion, while Kirby Corp. has shown improvements in its days of sales outstanding, the lack of data on days of inventory on hand and number of days of payables makes it difficult to provide a comprehensive analysis of the company's activity ratios. It is recommended to obtain more information on inventory and payables turnover to better evaluate the efficiency of Kirby's operations.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.79 | 0.76 | 0.60 | 0.55 | 0.75 |
| Total asset turnover | 0.53 | 0.49 | 0.41 | 0.37 | 0.47 |
Kirby Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, have shown varying trends over the past five years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue.
- The trend for Kirby Corp.'s fixed asset turnover ratio has been fluctuating over the five-year period, with values ranging from 0.55 to 0.80.
- The ratio increased from 0.55 in 2020 to 0.80 in 2023, indicating that the company improved its ability to generate sales from its fixed assets during this period.
- A higher fixed asset turnover ratio generally signifies better asset utilization efficiency, as the company is generating more revenue per dollar invested in fixed assets.
- Overall, the increasing trend in the fixed asset turnover ratio suggests that Kirby Corp. has been more effective in efficiently utilizing its fixed assets to drive sales growth.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company is using its total assets to generate sales.
- Kirby Corp.'s total asset turnover ratio has also exhibited fluctuating values over the past five years, ranging from 0.37 to 0.54.
- The ratio increased from 0.37 in 2020 to 0.54 in 2023, indicating an improvement in the company's ability to generate sales from its total assets during this period.
- Similar to the fixed asset turnover ratio, a higher total asset turnover ratio suggests better asset utilization efficiency and indicates that the company is generating more revenue per dollar of total assets.
- The increasing trend in the total asset turnover ratio suggests that Kirby Corp. has been utilizing its total assets more efficiently to drive sales growth and improve overall operational performance.
In conclusion, the analysis of Kirby Corp.'s long-term activity ratios highlights an improving trend in both fixed asset turnover and total asset turnover ratios over the five-year period. This indicates that the company has been able to enhance its asset utilization efficiency and generate more revenue from its asset base, which is a positive indicator of operational effectiveness and potential profitability.