MYR Group Inc (MYRG)

Short-term

Turnover ratios

The activity ratios of MYR Group Inc provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital turnover.

The receivables turnover ratio has shown a consistent increase over the last five years, indicating that the company is collecting its accounts receivables more quickly. This trend suggests improved liquidity and effective credit management.

On the other hand, the payables turnover ratio has fluctuated over the same period but has remained relatively stable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could result in better supplier relationships or possibly discount opportunities.

The working capital turnover ratio has also shown a generally increasing trend, reflecting the company's ability to efficiently utilize its working capital to generate sales. A higher working capital turnover ratio implies that the company is generating sales more effectively with its current assets.

While the inventory turnover ratio is not provided in the data, it is an important ratio in assessing how well the company manages its inventory levels. A higher inventory turnover ratio typically indicates efficient inventory management, as it reflects how quickly inventory is sold and restocked.

Overall, the activity ratios of MYR Group Inc suggest that the company has been improving its operational efficiency in managing receivables, payables, and working capital turnover, which could positively impact its overall financial performance and liquidity.

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Average number of days

Days of Inventory on Hand (DOH) for MYR Group Inc is not provided in the data table. However, it is important to note that a lower number of days of inventory on hand is generally preferred as it indicates efficient management of inventory levels.

Days of Sales Outstanding (DSO) for MYR Group Inc have shown a declining trend over the past five years, decreasing from 68.81 days in 2019 to 52.68 days in 2023. This indicates an improvement in the company's ability to collect its accounts receivable more efficiently.

Number of Days of Payables for MYR Group Inc has fluctuated over the years, with a general increasing trend from 2019 to 2023. In 2019, the company had 37.76 days of payables whereas in 2023, it increased to 40 days. This suggests that MYR Group Inc is taking longer to pay its suppliers.

Overall, the company has been able to reduce its Days of Sales Outstanding (DSO) over the years, indicating improved efficiency in collecting receivables. However, the trend in the Number of Days of Payables shows an increase, which may indicate changing payment policies or supplier relationships. The lack of information on Days of Inventory on Hand prevents a comprehensive analysis of all activity ratios.

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Long-term

MYR Group Inc's long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate revenue. The fixed asset turnover ratio has been gradually increasing over the past five years, reaching 13.55 in 2023. This indicates that MYR Group is generating $13.55 in revenue for every dollar of fixed assets invested in the business.

On the other hand, the total asset turnover ratio fluctuated slightly over the same period, with a peak of 2.31 in 2023. This ratio reflects MYR Group's ability to generate $2.31 in revenue for every dollar of total assets. Overall, both ratios suggest that MYR Group has been effectively utilizing its assets to generate sales, with a notably higher efficiency in utilizing its fixed assets over time.