Liberty Oilfield Services Inc (LBRT)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 17.05 17.71 16.96 16.62 17.44 17.43 18.43 18.15 15.55 16.50 16.89 18.32 17.67 16.81 12.48 8.22 8.12 13.99 16.82 19.39
Receivables turnover 23.30 24.29 19.87 20.78 25.13 23.54 24.12 6.30 7.08 5.22 5.45 5.27 6.06 4.71 3.38 3.07 2.85 7.66 21.51 5.74
Payables turnover 11.04 10.08 10.05 11.05 12.22 10.29 10.05 8.65 10.20 8.10 8.88 7.67 8.23 8.58 8.19 5.75 4.98 15.38 49.85 15.71
Working capital turnover 23.71 25.56 17.51 14.44 15.08 17.89 14.77 14.64 13.51 12.39 14.04 19.60 40.42 12.58 8.66 5.51 4.58 6.45 7.42 8.21

The activity ratios of Liberty Oilfield Services Inc show fluctuations over the periods analyzed.

1. Inventory turnover: The inventory turnover ratio declined from 19.39 in March 2020 to 8.12 in December 2020, indicating a decrease in the rate at which inventory was sold. It then increased to 18.15 by March 2024, suggesting an improvement in inventory management efficiency.

2. Receivables turnover: The receivables turnover ratio varied significantly, reaching a peak of 25.13 in December 2023. This indicates that the company collected its receivables more frequently in that period, which is a positive sign of liquidity and effective credit management.

3. Payables turnover: The payables turnover ratio fluctuated but generally remained within a certain range, with a slight decrease observed from June 2023 onwards. This suggests that the company was maintaining a stable payment cycle with its suppliers, although there may have been some delays in paying off its payables.

4. Working capital turnover: The working capital turnover ratio showed an increasing trend from March 2020 to September 2024, indicating that the company was generating more revenue relative to its working capital over time. The peak in December 2021 at 40.42 suggests a particularly efficient use of working capital during that period.

Overall, the analysis of these activity ratios provides insights into Liberty Oilfield Services Inc's operational efficiency, inventory management, accounts receivable collection, payment cycles, and utilization of working capital.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 21.41 20.61 21.52 21.96 20.93 20.94 19.80 20.11 23.47 22.12 21.61 19.92 20.66 21.71 29.25 44.40 44.95 26.10 21.71 18.82
Days of sales outstanding (DSO) days 15.67 15.03 18.37 17.56 14.52 15.51 15.13 57.90 51.55 69.93 67.00 69.27 60.19 77.56 108.01 119.01 127.99 47.65 16.97 63.55
Number of days of payables days 33.05 36.20 36.32 33.04 29.87 35.46 36.32 42.18 35.77 45.09 41.12 47.56 44.33 42.56 44.58 63.44 73.30 23.73 7.32 23.23

Liberty Oilfield Services Inc's activity ratios reflect its efficiency in managing its inventory, sales, and payables.

- Days of Inventory on Hand (DOH) indicates how many days it takes for the company to sell its inventory. Liberty Oilfield Services Inc's DOH has been relatively stable, ranging from 18.82 days to 21.96 days over the past few years. This suggests the company has been effectively managing its inventory levels.

- Days of Sales Outstanding (DSO) measures how long it takes for the company to collect payment from customers after making a sale. Liberty Oilfield Services Inc's DSO has shown significant fluctuations, ranging from as low as 14.52 days to as high as 127.99 days. The company's ability to collect payments in a timely manner has improved in recent periods.

- Number of Days of Payables indicates the average number of days it takes for the company to pay its suppliers. Liberty Oilfield Services Inc's payables days have also shown fluctuations, but generally, the company has been able to maintain a reasonable payment timeline to suppliers, ranging from 7.32 days to 73.30 days.

Overall, Liberty Oilfield Services Inc appears to be effectively managing its inventory, sales collection, and payment cycles, which is crucial for optimizing working capital management and operational efficiency.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 2.28 2.42 2.58 2.69 2.89 3.04 3.15 3.23 3.05 2.79 2.42 2.22 2.06 1.91 1.43 0.95 0.86 1.90 2.40 3.00
Total asset turnover 1.31 1.36 1.40 1.47 1.57 1.59 1.67 1.67 1.61 1.43 1.32 1.24 1.21 1.04 0.78 0.55 0.51 1.04 1.40 1.48

The Fixed Asset Turnover ratio for Liberty Oilfield Services Inc has shown fluctuations over the period under consideration, ranging from a low of 0.86 at the end of December 2020 to a high of 3.23 at the end of March 2023. The trend indicates an initially declining trend followed by a significant improvement, peaking at 3.23 in March 2023 before gradually declining again.

On the other hand, the Total Asset Turnover ratio for the company also depicted variability, with values ranging from 0.51 at the end of December 2020 to 1.67 at the end of March 2023. The trend for this ratio reveals a persistent increase from the low point in December 2020, reaching a peak in March 2023 before stabilizing around 1.4 to 1.5 in 2024.

Overall, analyzing these long-term activity ratios suggests that Liberty Oilfield Services Inc has effectively managed its fixed assets in generating revenue, with both ratios generally showing improvement over the period. However, the Fixed Asset Turnover ratio exhibited more fluctuations compared to the Total Asset Turnover ratio, which suggests varying efficiencies in asset utilization during different periods.