Knife River Corporation (KNF)

Short-term

Turnover ratios

The activity ratios of Knife River Corporation can provide insights into the efficiency of the company's operations.

1. Inventory Turnover: This ratio indicates how many times Knife River Corporation's inventory was sold and replaced over a specific period. The company had a fluctuating inventory turnover rate over the analyzed periods, ranging from 5.85 to 7.17. A higher turnover ratio generally indicates efficient inventory management, ensuring that stock levels are optimized without excess or shortages.

2. Receivables Turnover: Unfortunately, the data provided does not include information on receivables turnover for Knife River Corporation. This ratio would have shown how quickly the company collected payments from its customers. A higher receivables turnover ratio would indicate efficient collection practices.

3. Payables Turnover: Similar to receivables turnover, the data does not provide information on the payables turnover ratio for Knife River Corporation. This ratio would have indicated how quickly the company paid its suppliers.

4. Working Capital Turnover: This ratio measures the efficiency of Knife River Corporation in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio implies that the company effectively utilized its resources to generate revenue. Knife River Corporation had varying working capital turnover ratios over the periods analyzed, ranging from 3.94 to 15.26. A high ratio might indicate the company is effectively leveraging its working capital to drive sales.

In conclusion, based on the available data, Knife River Corporation had varying levels of efficiency in managing its inventory and working capital during the periods under review. Please note that the lack of data on receivables and payables turnover ratios limits the overall assessment of the company's operational efficiency in terms of managing its receivables and payables.

---

Average number of days

The activity ratios of Knife River Corporation provide insights into its efficiency in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH): Knife River's DOH fluctuated over the period analyzed, ranging from a low of 50.91 days to a high of 62.42 days. A decreasing trend in DOH signifies improved inventory management efficiency as the company is selling goods faster or holding less inventory. Conversely, an increasing trend may indicate potential issues with sales or inventory control.

2. Days of Sales Outstanding (DSO): The DSO data for Knife River were not provided, which makes it challenging to assess the efficiency of the company in collecting receivables. A lower DSO typically indicates faster collection of receivables, whereas a high DSO may suggest potential collection issues, leading to cash flow problems.

3. Number of Days of Payables: Similar to DSO, the information on the number of days of payables was not available in the data provided. Nonetheless, a longer period of payables may imply that the company is taking advantage of extended payment terms offered by suppliers, positively impacting cash flow. However, excessively long payables may strain relationships with suppliers.

In conclusion, while the analysis of Knife River Corporation's activity ratios provides some insights into its operational efficiency, a more comprehensive evaluation could be achieved by incorporating additional financial metrics and industry benchmarks.

---

Long-term

Knife River Corporation's long-term activity ratios provide insight into how efficiently the company is utilizing its assets to generate sales. Let's analyze the two given ratios:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how well a company is utilizing its fixed assets to generate revenue. In the case of Knife River Corporation, the ratio has shown a consistent increase over the quarters from 1.86 in December 2022 to 2.02 in September 2023, indicating that the company is generating more sales per dollar of fixed assets invested. However, data is unavailable for the latter part of the reporting period.

2. Total Asset Turnover:
- The total asset turnover ratio measures the company's ability to generate sales from its total assets. Knife River Corporation's total asset turnover ratio fluctuated during the reporting period, ranging from 0.99 in June 2023 to 1.13 in March 2024. Overall, the company has shown improvement in utilizing its total assets to generate sales, with the ratio generally trending upwards.

In conclusion, based on the data provided, Knife River Corporation has shown improvement in both fixed asset turnover and total asset turnover ratios, indicating effective asset utilization and revenue generation. However, the company should ensure sustainable growth and efficiency in asset management to maintain or improve these ratios in the future.