MDU Resources Group Inc (MDU)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 37.77 | 47.95 | 77.40 | 12.22 | 77.93 | 53.15 | 87.10 | 11.05 | 12.23 | 13.11 | 12.95 | 12.78 | 13.94 | 14.15 | 13.36 | 13.20 | 14.08 | 13.27 | 10.98 | 11.03 |
| Receivables turnover | 5.27 | 8.60 | 8.23 | 5.89 | 6.84 | 5.73 | 7.17 | 6.19 | 6.00 | 5.74 | 6.22 | 7.09 | 6.33 | 5.47 | 5.98 | 6.51 | 6.38 | 5.34 | 5.49 | 6.43 |
| Payables turnover | 6.95 | 9.28 | 11.66 | 9.51 | 9.53 | 10.55 | 11.26 | 9.34 | 8.57 | 7.79 | 9.48 | 10.67 | 9.52 | 9.27 | 9.34 | 10.51 | 9.72 | 10.03 | 10.05 | 9.76 |
| Working capital turnover | 17.24 | 22.51 | 18.61 | 16.10 | 13.69 | 8.76 | 11.40 | 14.49 | 12.38 | 11.41 | 10.87 | 13.14 | 14.80 | 12.69 | 13.86 | 9.92 | 12.37 | 12.07 | 9.18 | 26.94 |
The activity ratios of MDU Resources Group Inc provide insights into the efficiency of the company's operations in managing its assets and liabilities.
1. Inventory Turnover:
- The inventory turnover has shown fluctuations over the quarters, ranging from a low of 2.19 in Q4 2022 to a high of 15.80 in Q2 2023.
- Generally, the company is able to turn over its inventory fairly quickly, with a notable improvement in efficiency in Q2 and Q3 2023 compared to the previous quarters.
2. Receivables Turnover:
- The receivables turnover ratio indicates how quickly the company is able to collect on its receivables.
- There is a consistent trend of improvement in receivables turnover from Q1 2022 to Q3 2023, with the highest ratio recorded in Q3 2023.
- This suggests effective management of credit and collection policies by the company.
3. Payables Turnover:
- The payables turnover ratio measures how quickly the company pays its suppliers.
- MDU Resources Group Inc has shown variability in payables turnover, with fluctuations in the ratio across the quarters.
- The company's ability to negotiate favorable credit terms with suppliers may impact this ratio.
4. Working Capital Turnover:
- The working capital turnover ratio reflects the efficiency of the company in utilizing its working capital to generate sales.
- MDU Resources Group Inc has shown an increasing trend in working capital turnover over the quarters, reaching its peak in Q4 2023.
- This indicates that the company is effectively managing its working capital to support its operations and generate revenue.
In conclusion, the analysis of MDU Resources Group Inc's activity ratios suggests overall improvements in managing inventories, receivables, payables, and working capital over the analyzed periods. These trends indicate enhanced efficiency in the company's operational activities.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.66 | 7.61 | 4.72 | 29.87 | 4.68 | 6.87 | 4.19 | 33.04 | 29.84 | 27.84 | 28.19 | 28.55 | 26.18 | 25.79 | 27.31 | 27.65 | 25.93 | 27.51 | 33.24 | 33.09 |
| Days of sales outstanding (DSO) | days | 69.31 | 42.42 | 44.37 | 62.01 | 53.34 | 63.69 | 50.89 | 58.96 | 60.83 | 63.61 | 58.66 | 51.48 | 57.66 | 66.68 | 61.08 | 56.03 | 57.22 | 68.38 | 66.54 | 56.73 |
| Number of days of payables | days | 52.55 | 39.33 | 31.31 | 38.38 | 38.31 | 34.59 | 32.42 | 39.08 | 42.59 | 46.87 | 38.48 | 34.20 | 38.33 | 39.36 | 39.08 | 34.73 | 37.57 | 36.39 | 36.31 | 37.40 |
The activity ratios of MDU Resources Group Inc, as derived from the provided data, show fluctuations in the efficiency of the company's operations over the quarters.
1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for the company to sell its entire inventory. MDU Resources Group Inc has seen a significant decrease in its DOH from Q1 2023 to Q3 2023, suggesting an improvement in inventory management efficiency. However, there was a steep rise in DOH in Q4 2023, pointing towards potential issues with inventory control during that period.
2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect payments from its customers. MDU Resources Group Inc experienced fluctuations in its DSO throughout the quarters, with the lowest value recorded in Q3 2022. Generally, a lower DSO indicates better cash flow management and quicker conversion of sales into cash.
3. Number of Days of Payables: This ratio represents the average number of days it takes for the company to pay its suppliers. MDU Resources Group Inc showed fluctuating trends in the number of days of payables over the quarters, with a notable decrease in Q3 2023. A lower number of days of payables may indicate efficient cash management but could also indicate strained supplier relationships if too low.
Overall, analyzing these activity ratios can provide insights into MDU Resources Group Inc's operational efficiency, inventory management, collections, and payment practices over the quarters.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.97 | 1.53 | 1.56 | 1.24 | 1.52 | 1.03 | 1.18 | 1.01 | 0.99 | 1.03 | 1.06 | 1.07 | 1.07 | 1.09 | 1.10 | 1.10 | 1.09 | 1.08 | 1.03 | 1.00 |
| Total asset turnover | 0.63 | 0.98 | 1.00 | 0.77 | 0.75 | 0.51 | 0.59 | 0.65 | 0.64 | 0.66 | 0.68 | 0.69 | 0.69 | 0.68 | 0.70 | 0.69 | 0.69 | 0.67 | 0.64 | 0.64 |
The fixed asset turnover ratio for MDU Resources Group Inc has been fluctuating over the past eight quarters, ranging from a low of 0.91 in Q4 2023 to a high of 1.35 in Q2 2023. This ratio indicates how efficiently the company is generating sales from its investment in fixed assets. A higher ratio suggests better utilization of fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has also shown fluctuations during the same period, with a range of 0.59 in Q4 2023 to 0.87 in Q2 2023. This ratio measures the company's ability to generate sales from all its assets. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets.
Overall, the trend in both ratios for MDU Resources Group Inc suggests some variability in the efficiency of asset utilization over the quarters analyzed. It is important for the company to maintain or improve these ratios to demonstrate effective management of its assets and maximize revenue generation.