Dorian LPG Ltd (LPG)

Short-term

Turnover ratios

Dorian LPG Ltd's activity ratios reflect the efficiency of the company in managing its inventories, receivables, payables, and working capital over the past five years.

1. Inventory turnover: The inventory turnover ratio has been fluctuating over the years, ranging from 37.94 to 66.07. A higher inventory turnover indicates that Dorian LPG Ltd is effectively managing its inventory levels and selling its products quickly.

2. Receivables turnover: The receivables turnover has been increasing steadily from 4.68 to 10.58, showing that the company has been collecting its accounts receivables more efficiently. A higher receivables turnover ratio implies that Dorian LPG Ltd is successful in collecting payments from its customers promptly.

3. Payables turnover: The payables turnover ratio has also been on an upward trend, ranging from 6.94 to 15.52. This indicates that the company is paying its suppliers more frequently, which could help in maintaining good relationships with vendors.

4. Working capital turnover: The working capital turnover ratio has shown significant fluctuations over the years, from 1.29 to 6.11. A higher working capital turnover suggests that Dorian LPG Ltd is efficiently using its working capital to generate sales revenue.

Overall, Dorian LPG Ltd's activity ratios demonstrate improvements in managing inventory levels, collecting receivables, paying suppliers, and utilizing working capital effectively. These trends indicate a positive operational performance and effective utilization of resources by the company.

---

Average number of days

Dorian LPG Ltd's activity ratios indicate how efficiently the company is managing its inventory, collecting receivables, and managing payables.

1. Days of Inventory on Hand (DOH): Dorian LPG Ltd's trend in DOH shows an improvement from 2019 to 2024, decreasing from 7.75 days to 5.52 days. This suggests that the company is now able to convert its inventory into sales more quickly, which may signify better inventory management or increased demand for its products.

2. Days of Sales Outstanding (DSO): The trend in DSO for Dorian LPG Ltd shows fluctuations over the years, with a notable decrease from 2020 to 2024 (74.08 days to 34.51 days). This indicates that the company is collecting its accounts receivable more efficiently, possibly through stricter credit policies or improved collection processes.

3. Number of Days of Payables: Dorian LPG Ltd's days of payables have also shown a decreasing trend from 2019 to 2024, indicating that the company is taking more time to pay its suppliers. This may result in better cash flow management and potentially improved relationships with suppliers.

Overall, Dorian LPG Ltd's activity ratios demonstrate positive trends in inventory management, accounts receivable collection, and accounts payable management, indicating improved efficiency in its operating cycle over the years.

---

Long-term

Dorian LPG Ltd's fixed asset turnover ratio has shown an increasing trend over the past five years, indicating that the company is generating more revenue from its fixed assets. This suggests that the company is efficiently utilizing its long-term assets to generate sales.

On the other hand, the total asset turnover ratio, which includes both fixed and current assets, has also been on an upward trajectory. This indicates that the company is effectively generating sales from its total assets, including both long-term and short-term assets.

Overall, both the fixed asset turnover and total asset turnover ratios have improved over the past five years, reflecting Dorian LPG Ltd's ability to efficiently utilize its assets to generate revenue. This trend is positive as it signifies the company's increasing efficiency in utilizing its long-term assets to drive sales.