Kinder Morgan Inc (KMI)

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	11.21	11.60	13.83	16.24	16.14	16.60	15.54	15.20	16.19	13.83	13.62	12.58	10.19	10.62	10.40	12.52	11.19	11.23	10.94	13.72
Receivables turnover	9.66	10.57	13.35	14.23	10.20	10.17	8.58	9.45	10.05	10.68	10.17	9.69	8.73	10.45	11.40	10.87	9.38	10.71	11.36	10.81
Payables turnover	4.31	4.58	6.89	8.80	7.09	7.52	6.34	7.46	7.23	5.31	5.68	5.06	4.24	4.35	5.01	5.11	4.54	4.97	5.47	5.82
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Kinder Morgan Inc's activity ratios provide insights into the efficiency with which the company manages its assets and liabilities.

Inventory turnover ratio has shown a decreasing trend from Q1 2023 to Q4 2023, indicating that the company is taking longer to sell its inventory. However, the levels are relatively stable, with an average of around 12, suggesting that Kinder Morgan efficiently turns its inventory into sales.

Receivables turnover ratio has been fluctuating but has generally shown an increasing trend from Q1 2022 to Q3 2023. This indicates that Kinder Morgan is collecting receivables more frequently, which is positive for its liquidity and cash flow.

Payables turnover ratio has also fluctuated but has generally shown an increasing trend from Q1 2022 to Q3 2023. This suggests that Kinder Morgan is taking longer to pay its suppliers, potentially improving its cash flow position.

Working capital turnover data is not provided in the table, making it challenging to analyze the efficiency of Kinder Morgan's working capital management.

Overall, Kinder Morgan's activity ratios reflect effective management of its inventory and receivables, with improvements in payables turnover. Further analysis of working capital turnover would provide a more complete picture of the company's 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	32.56	31.46	26.40	22.48	22.62	21.99	23.49	24.02	22.55	26.40	26.80	29.01	35.83	34.37	35.09	29.16	32.63	32.49	33.36	26.59
Days of sales outstanding (DSO)	days	37.80	34.53	27.34	25.65	35.78	35.89	42.56	38.64	36.32	34.19	35.90	37.68	41.80	34.92	32.02	33.59	38.91	34.07	32.13	33.78
Number of days of payables	days	84.71	79.61	52.98	41.49	51.51	48.57	57.57	48.93	50.52	68.68	64.22	72.19	86.18	83.93	72.90	71.42	80.39	73.48	66.73	62.73

Days of Inventory on Hand (DOH) measures how many days on average it takes for the company to sell its inventory. In the most recent quarter, Q4 2023, Kinder Morgan Inc had 38.81 days of inventory on hand, showing an increase from the previous quarter. This indicates that the company is holding onto its inventory for a longer period, which may tie up capital and increase storage costs.

Days of Sales Outstanding (DSO) evaluates how long it takes for the company to collect payments from its customers. In Q4 2023, Kinder Morgan Inc had a DSO of 37.80 days, which decreased from the previous quarter. This suggests that the company is improving its efficiency in collecting receivables, which could be favorable for cash flow management.

Number of Days of Payables reflects the average number of days it takes for the company to pay its suppliers. In Q4 2023, Kinder Morgan Inc had 100.97 days of payables, indicating an increase compared to the previous quarter. A higher number of days of payables may suggest that the company is taking longer to settle its outstanding obligations, potentially indicating a strain on vendor relationships.

Analyzing these activity ratios collectively suggests that Kinder Morgan Inc might be experiencing challenges in managing its inventory effectively, even though it has shown improvement in collecting payments from customers. However, the increase in days of payables could be a signal of potential cash flow or liquidity issues that need to be addressed.

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	0.41	0.44	0.48	0.53	0.54	0.54	0.50	0.44	0.47	0.43	0.42	0.39	0.33	0.33	0.34	0.36	0.36	0.36	0.37	0.37
Total asset turnover	0.22	0.23	0.25	0.27	0.27	0.27	0.25	0.23	0.24	0.22	0.21	0.19	0.16	0.17	0.17	0.18	0.18	0.18	0.18	0.19

The fixed asset turnover ratio for Kinder Morgan Inc has been declining over the past year, from 0.54 in Q4 2022 to 0.41 in Q4 2023. This indicates that the company is generating less revenue from its fixed assets. A lower fixed asset turnover could suggest that the company is not efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also decreased over the same period, from 0.27 in Q4 2022 to 0.22 in Q4 2023. This ratio measures the company's ability to generate sales from all its assets. The declining trend in total asset turnover may indicate that Kinder Morgan Inc is becoming less efficient in utilizing all its assets to generate revenue.

Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios for Kinder Morgan Inc suggests a potential decrease in operational efficiency and effectiveness in utilizing assets to generate sales over the past year.