Liberty Oilfield Services Inc (LBRT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 17.05 | 17.44 | 15.55 | 17.67 | 8.01 |
| Receivables turnover | 23.30 | 25.13 | 7.08 | 6.06 | 2.85 |
| Payables turnover | 11.04 | 12.22 | 10.20 | 8.24 | 4.91 |
| Working capital turnover | 23.71 | 15.08 | 13.51 | 40.42 | 4.58 |
From the provided data on Liberty Oilfield Services Inc activity ratios, we can see that the company's inventory turnover has been improving steadily over the years, from 8.01 in 2020 to 17.05 in 2024. This indicates that the company is managing its inventory efficiently and selling its products at a faster pace each year.
Similarly, the receivables turnover ratio has shown significant improvement, increasing from 2.85 in 2020 to 23.30 in 2024. This suggests that the company is collecting its accounts receivable more quickly, which is a positive sign of strong cash flow management.
In terms of payables turnover, Liberty Oilfield Services Inc has also shown improvement, with the ratio increasing from 4.91 in 2020 to 11.04 in 2024. This indicates that the company is taking longer to pay its suppliers, which can improve working capital management and cash flow.
Lastly, the working capital turnover ratio has fluctuated over the years but generally shows an increasing trend, from 4.58 in 2020 to 23.71 in 2024. This suggests that the company is generating more revenue relative to its working capital, which is a positive indicator of operational efficiency and effective utilization of resources.
Overall, Liberty Oilfield Services Inc's activity ratios demonstrate a trend of improving efficiency in managing inventory, receivables, payables, and working capital, which can contribute to the company's financial health and performance over time.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.41 | 20.93 | 23.47 | 20.65 | 45.55 |
| Days of sales outstanding (DSO) | days | 15.67 | 14.52 | 51.55 | 60.19 | 127.99 |
| Number of days of payables | days | 33.05 | 29.87 | 35.77 | 44.31 | 74.27 |
Analyzing the activity ratios of Liberty Oilfield Services Inc provides insight into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a significant improvement from 45.55 days in 2020 to 21.41 days in 2024.
- This indicates that the company has been able to manage its inventory more efficiently over the years, reducing the number of days it takes to sell through its inventory.
2. Days of Sales Outstanding (DSO):
- DSO decreased notably from 127.99 days in 2020 to 15.67 days in 2024.
- This signifies that Liberty Oilfield Services Inc has been able to collect its accounts receivable at a faster rate, indicating effective credit management and potentially better collection efforts.
3. Number of Days of Payables:
- The trend in payables days saw a steady decline from 74.27 days in 2020 to 33.05 days in 2024.
- A decreasing trend in payables days suggests that the company is paying its suppliers more quickly, possibly to take advantage of discounts or maintain good relations with vendors.
In summary, Liberty Oilfield Services Inc has shown improvements in managing its inventory, collecting receivables efficiently, and managing payables effectively over the analyzed period. These trends indicate enhanced operational efficiency and effective working capital management practices.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.28 | 2.89 | 3.05 | 2.06 | 0.86 |
| Total asset turnover | 1.31 | 1.57 | 1.61 | 1.21 | 0.51 |
Based on the provided data for Liberty Oilfield Services Inc's long-term activity ratios, we observe the following trends:
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company generates revenue from its fixed assets. Liberty Oilfield Services Inc's Fixed Asset Turnover has shown significant improvement over the years.
- In December 31, 2020, the Fixed Asset Turnover was relatively low at 0.86, indicating that the company generated $0.86 in revenue for every dollar of fixed assets.
- By December 31, 2024, the ratio had increased to 2.28, suggesting that the company was able to generate $2.28 in revenue for every dollar of fixed assets.
- The peak performance was observed in December 31, 2022, with a ratio of 3.05, indicating a higher level of efficiency in utilizing fixed assets to generate revenue.
2. Total Asset Turnover:
- The Total Asset Turnover ratio reflects how well a company utilizes its total assets to generate sales. Liberty Oilfield Services Inc's Total Asset Turnover has also shown an increasing trend.
- In December 31, 2020, the Total Asset Turnover was 0.51, suggesting that the company generated $0.51 in revenue for every dollar of total assets.
- By December 31, 2024, the ratio had improved to 1.31, indicating that the company was able to generate $1.31 in revenue for every dollar of total assets.
- The highest Total Asset Turnover was recorded on December 31, 2022, with a ratio of 1.61, demonstrating strong efficiency in utilizing total assets to generate sales.
Overall, the trends in both Fixed Asset Turnover and Total Asset Turnover ratios for Liberty Oilfield Services Inc show significant improvement over the years. The increasing ratios indicate that the company has been more effective in generating revenue from its assets, both fixed and total, which is a positive indicator of operational efficiency and effective asset utilization.