MDU Resources Group Inc (MDU)
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 | 64.60 | 40.84 | 53.21 | 64.49 | 47.88 | 59.50 | 92.75 | 14.39 | 15.04 | 13.75 | 12.77 | 12.70 | 13.81 | 14.59 | 14.36 | 14.16 | 15.40 | 15.72 | 14.87 | 14.70 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | 23.85 | 17.79 | 11.18 | 17.24 | 16.66 | 16.13 | 15.44 | 13.11 | 11.79 | 12.89 | 14.49 | 12.38 | 11.41 | 10.87 | 13.14 | 14.80 | 12.69 | 13.86 | 9.92 |
The inventory turnover ratio for MDU Resources Group Inc has fluctuated over the period under review. It increased steadily from 14.70 in March 2020 to a peak of 92.75 in June 2023, which may indicate improved efficiency in managing and selling inventory. However, this was followed by a sharp decline to 53.21 in September 2023 and further decreases to 40.84 in December 2024, suggesting potential issues with inventory management or reduced sales.
The receivables turnover ratio data are unavailable (denoted by "—"), indicating that we cannot analyze the efficiency of the company in collecting its receivables during the specified time frame. This lack of data limits our ability to assess the effectiveness of the company's credit policies and the speed of converting credit sales into cash.
Similarly, the payables turnover ratio data are also unavailable (denoted by "—"), preventing us from evaluating how quickly the company is paying its suppliers during the period. This information is essential for understanding the company's relationships with its vendors and its working capital management.
In terms of the working capital turnover ratio, MDU Resources Group Inc generally maintained a relatively stable trend from March 2020 to September 2023, with fluctuations within a certain range. However, there was a notable increase in the ratio in the latter half of 2024, reaching a peak of 23.85 in September 2024. This could indicate a more efficient utilization of working capital during this period, possibly through better management of current assets and liabilities.
In conclusion, while the inventory turnover and working capital turnover ratios provide insights into MDU Resources Group Inc's operational efficiency and working capital management, the lack of data for the receivables and payables turnover ratios limits the comprehensive analysis of the company's overall activity and liquidity performance.
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 | 5.65 | 8.94 | 6.86 | 5.66 | 7.62 | 6.13 | 3.94 | 25.37 | 24.27 | 26.55 | 28.59 | 28.73 | 26.42 | 25.02 | 25.41 | 25.78 | 23.69 | 23.21 | 24.55 | 24.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data on MDU Resources Group Inc's activity ratios, we can analyze the Days of Inventory on Hand (DOH) metric over the reporting periods. The DOH indicates how many days, on average, the company holds inventory before selling it.
The analysis of MDU Resources Group Inc's DOH shows that there has been some fluctuation in the number of days the company holds inventory. From March 31, 2020, to December 31, 2024, the DOH ranged from a low of 3.94 days on June 30, 2023, to a high of 28.73 days on March 31, 2022. Overall, the trend appears relatively stable, with the DOH staying within a moderate range during most periods.
It is essential for the company to manage its inventory efficiently to avoid excess carrying costs and potential obsolescence. A lower DOH generally indicates a more efficient inventory management process, whereas a higher DOH may suggest overstocking or challenges in selling inventory promptly.
However, since the data only provides information on DOH and not on Days of Sales Outstanding (DSO) or Number of Days of Payables, a comprehensive analysis of the company's working capital management and liquidity position would require additional information on these metrics.
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 | — | — | — | — | — | 1.12 | 1.35 | 1.19 | 1.14 | 1.09 | 1.05 | 1.01 | 0.99 | 1.03 | 1.04 | 1.07 | 1.07 | 1.09 | 1.10 | 1.10 |
| Total asset turnover | 0.55 | 0.54 | 0.55 | 0.57 | 0.63 | 0.72 | 0.87 | 0.74 | 0.72 | 0.68 | 0.66 | 0.65 | 0.64 | 0.66 | 0.68 | 0.69 | 0.69 | 0.68 | 0.70 | 0.69 |
Fixed Asset Turnover Ratio Analysis:
MDU Resources Group Inc's fixed asset turnover ratio has been relatively stable over the years, ranging from 1.10 to 1.35. The ratio measures the company's efficiency in generating sales from its investment in fixed assets.
The trend indicates that the company is effectively utilizing its fixed assets to generate revenue. An increase in the fixed asset turnover ratio signifies improved operational efficiency and better utilization of the company's fixed assets.
Total Asset Turnover Ratio Analysis:
MDU Resources Group Inc's total asset turnover ratio shows a declining trend from 0.69 to 0.55 over the years. This ratio measures the company's ability to generate sales from its total assets.
The decreasing trend in the total asset turnover ratio may indicate that the company's sales are not keeping pace with its total asset base, which could imply inefficiencies in asset utilization or potential underperformance in generating revenue from its assets.
Overall, while the fixed asset turnover ratio indicates efficiency in utilizing fixed assets, the declining trend in the total asset turnover ratio suggests a need for the company to focus on improving sales generation from its total asset base to enhance overall operational performance.