Nextera Energy Inc (NEE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.47 | 4.81 | 5.59 | 5.43 | 4.70 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Nextera Energy Inc's Inventory Turnover ratio improved from 4.70 in 2020 to 5.43 in 2021, indicating that the company managed its inventory more efficiently by selling its products more quickly during the year. This trend continued with further improvement to 5.59 in 2022 before a slight decrease to 4.81 in 2023 and another decrease to 4.47 in 2024. The fluctuations in the ratio could be due to changes in sales volume, inventory management practices, or external factors impacting demand.
The Receivables Turnover ratio was not provided for any of the years, which suggests that the company's handling of accounts receivable turnover was not disclosed in the data.
Similarly, data for the Payables Turnover ratio was not available for any of the years, so it is not possible to analyze how efficiently Nextera Energy managed its trade payables during this period.
The Working Capital Turnover ratio was also not provided for any of the years, indicating a lack of insight into how effectively the company utilized its working capital to generate revenue. This ratio typically reflects the efficiency of the company's operations in utilizing its current assets and liabilities.
In summary, while the Inventory Turnover ratio showed fluctuations over the years, the lack of data for Receivables Turnover, Payables Turnover, and Working Capital Turnover ratios limits a comprehensive analysis of Nextera Energy Inc's activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 81.74 | 75.82 | 65.26 | 67.19 | 77.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Nextera Energy Inc, the activity ratios can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
- In 2020, the company had 77.71 days of inventory on hand, which decreased to 67.19 days in 2021 and further to 65.26 days in 2022. This indicates an improvement in managing inventory levels more efficiently. However, in 2023 and 2024, the days of inventory on hand increased to 75.82 days and 81.74 days, respectively, suggesting a potential buildup of inventory.
2. Days of Sales Outstanding (DSO):
- The data does not provide specific values for Days of Sales Outstanding for any of the years, indicating a lack of information on how quickly the company collects its accounts receivable. Without this data, it is challenging to assess the efficiency of Nextera Energy Inc in collecting payments from customers.
3. Number of Days of Payables:
- Similar to DSO, the information for the Number of Days of Payables is not provided for any of the years. This makes it difficult to evaluate how long the company takes to pay its suppliers and manage its accounts payable effectively.
In conclusion, the analysis of Nextera Energy Inc's activity ratios based on the provided data reveals improvements in managing inventory levels over the years. However, the lack of information on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's overall efficiency in managing its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.19 | 0.17 | 0.20 |
| Total asset turnover | 0.09 | 0.16 | 0.13 | 0.12 | 0.14 |
The fixed asset turnover ratio for Nextera Energy Inc has shown a slight decline from 0.20 in December 31, 2020, to 0.17 in December 31, 2021, and then a slight increase to 0.19 in December 31, 2022. However, data for December 31, 2023, and December 31, 2024, is not available for analysis. This indicates that the company generated $0.17 in revenue for every dollar invested in fixed assets in 2021.
On the other hand, the total asset turnover ratio for Nextera Energy Inc has shown a decreasing trend from 0.14 in December 31, 2020, to 0.12 in December 31, 2021, and further to 0.09 in December 31, 2024. However, there was a slight increase to 0.13 in December 31, 2022, and a significant jump to 0.16 in December 31, 2023. This indicates that the company generated less revenue for every dollar invested in total assets in 2024 compared to prior years.
Overall, the declining trend in total asset turnover ratio indicates that Nextera Energy Inc might be facing challenges in efficiently utilizing its total assets to generate revenue. This trend should be monitored closely to assess the company's long-term operational efficiency and asset utilization strategies.