Alliant Energy Corp (LNT)

Short-term

Turnover ratios

1. Inventory Turnover:
- Alliant Energy Corp.'s inventory turnover has shown a decreasing trend over the past five years, indicating a longer time taken to sell inventory.
- The company's inventory turnover ratio has ranged from 4.72 to 6.51, with the lowest ratio observed in 2023.
- A lower inventory turnover may suggest potential issues in managing inventory levels efficiently or changes in demand for the company's products.

2. Receivables Turnover:
- Alliant Energy Corp.'s receivables turnover has been relatively stable over the past five years, ranging from 8.15 to 9.07.
- The consistent turnover indicates the company effectively collects payments from customers within a reasonable time frame.
- A higher receivables turnover is generally favorable, as it implies faster cash inflows and effective credit management.

3. Payables Turnover:
- The payables turnover ratio for Alliant Energy Corp. fluctuated between 2.37 and 3.50 over the analyzed period.
- The company has managed its payables effectively, with a downward trend observed in recent years.
- A lower payables turnover may suggest a decrease in the time taken to pay suppliers, impacting cash flow management and relationships with suppliers.

4. Working Capital Turnover:
- Unfortunately, the working capital turnover data is missing.
- This ratio measures how effectively a company utilizes its working capital to generate sales.
- With this information absent, it's challenging to assess Alliant Energy Corp.'s efficiency in converting working capital into revenue over the years.

In summary, Alliant Energy Corp.'s activity ratios indicate varying levels of efficiency in managing inventory, receivables, and payables. The stability in receivables turnover is a positive sign, while fluctuations in inventory and payables turnover may warrant further analysis to understand the underlying reasons. However, the absence of working capital turnover data limits a comprehensive evaluation of the company's overall operating efficiency.

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Average number of days

Alliant Energy Corp.'s activity ratios reveal the efficiency of the company's operations in managing its inventory, receivables, and payables over the past five years.

1. Days of Inventory on Hand (DOH):
- Alliant Energy's DOH has shown an increasing trend over the last five years, from 56.06 days in 2019 to 77.38 days in 2023.
- This indicates that the company is taking longer to sell its inventory or has increased its inventory levels relative to sales.
- The longer holding period may lead to higher carrying costs and potential obsolescence risks.

2. Days of Sales Outstanding (DSO):
- Alliant Energy's DSO has fluctuated slightly but remained relatively stable over the period, ranging from 40.24 days in 2019 to 44.79 days in 2022.
- A lower DSO indicates that the company is collecting receivables more quickly, which is favorable for cash flow management.
- However, the slight increase in recent years may suggest a potential decrease in the efficiency of collecting receivables.

3. Number of Days of Payables:
- Alliant Energy's number of days of payables has been fluctuating, with an increasing trend overall from 104.16 days in 2019 to 137.83 days in 2023.
- The increase in days of payables indicates that the company is taking longer to pay its suppliers, which may be a strategic move to manage cash flow.
- However, excessively delaying payments may strain vendor relationships and affect the company's ability to negotiate favorable terms in the future.

In conclusion, while Alliant Energy Corp. has shown some fluctuations in its activity ratios, there are areas for improvement, such as managing inventory levels more efficiently and monitoring the collection of receivables. The company's strategic approach to managing payables should be balanced to maintain good vendor relationships while optimizing cash flow.

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Long-term

The fixed asset turnover ratio for Alliant Energy Corp. has been showing a slight decline from 0.27 in 2019 to 0.23 in 2023. This indicates that the company's ability to generate sales revenue from its investment in fixed assets has decreased over the years. The decreasing trend suggests that the company may be underutilizing its fixed assets, or there could be inefficiencies in their utilization.

On the other hand, the total asset turnover ratio has also been on a declining trend, from 0.22 in 2019 to 0.19 in 2023. This ratio indicates how efficiently the company is using all its assets to generate sales. The decreasing trend in total asset turnover suggests that overall asset efficiency has been decreasing, and the company may not be effectively utilizing its total assets to generate revenue.

In conclusion, both the fixed asset turnover and total asset turnover ratios for Alliant Energy Corp. have been showing a declining trend over the past five years. This indicates a decreasing efficiency in utilizing both fixed and total assets to generate sales revenue, which could be a concern for stakeholders and may require further investigation into the company's operational efficiency and asset management strategies.