Alliant Energy Corp (LNT)

Short-term

Turnover ratios

Based on the activity ratios of Alliant Energy Corp. over the past eight quarters, we can observe the following trends:

1. Inventory Turnover:
The inventory turnover ratio has been relatively stable, ranging from 4.72 to 8.35 over the period. This indicates that Alliant Energy is managing its inventory efficiently, with a higher turnover generally being favorable as it suggests that the company is selling inventory quickly.

2. Receivables Turnover:
Alliant Energy has maintained a consistent receivables turnover ratio, fluctuating between 7.98 and 9.85. This implies that the company is efficiently collecting receivables from its customers, which is essential for maintaining healthy cash flow.

3. Payables Turnover:
The payables turnover ratio has varied between 2.18 and 4.03. A higher ratio indicates that the company is paying its suppliers more quickly, which can be beneficial for building strong relationships with vendors and potentially negotiating better terms.

4. Working Capital Turnover:
Unfortunately, the data provided does not include the working capital turnover ratio for Alliant Energy Corp. in any of the observed quarters. This ratio can provide insights into how effectively the company is utilizing its working capital to generate sales.

Overall, Alliant Energy Corp. appears to be effectively managing its activity ratios, with consistent performance in inventory turnover, receivables turnover, and payables turnover.

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Average number of days

Alliant Energy Corp.'s activity ratios indicate the efficiency with which the company manages its inventory, collects receivables, and pays its suppliers.

- Days of inventory on hand (DOH) have shown an increasing trend, indicating that the company is holding inventory for a longer period before it is sold. This could potentially tie up working capital and increase carrying costs.

- Days of sales outstanding (DSO) have been relatively stable over the periods, suggesting that the company collects receivables in a timely manner, with a slight decrease in Q2 and Q3 2023 compared to the previous quarters.

- The number of days of payables has shown fluctuations, with an obvious trend of decreasing payment periods. This could potentially indicate that the company is paying its suppliers more quickly, which may strain cash flow but could also improve relationships with suppliers.

Overall, Alliant Energy Corp. should focus on optimizing its inventory management to reduce the days of inventory on hand, while also balancing the collection of receivables and payments to suppliers to maintain healthy liquidity and working capital levels.

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Long-term

The fixed asset turnover ratio for Alliant Energy Corp. has been relatively stable over the past eight quarters, ranging from 0.23 to 0.26. This indicates that for every dollar invested in fixed assets, the company generates between $0.23 to $0.26 in revenue. A higher fixed asset turnover is generally favorable as it suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown stability in the range of 0.19 to 0.21 over the same period. This metric reflects how efficiently the company is using its total assets to generate revenue. A higher total asset turnover implies better efficiency in asset utilization.

Both ratios point to Alliant Energy Corp.'s consistent performance in generating revenue relative to its assets, with neither ratio showing significant fluctuations. The company appears to be effectively utilizing its fixed assets and total assets to generate sales, which is a positive sign for investors and indicates operational efficiency.