Nextera Energy Inc (NEE)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of Nextera Energy Inc as follows:

1. Inventory Turnover:
The inventory turnover ratio for Nextera Energy Inc has been relatively stable over the periods, ranging from 4.68 to 5.78 times. This indicates that the company is efficient in managing its inventory levels and converting them into sales. A higher inventory turnover ratio generally reflects effective inventory management.

2. Receivables Turnover:
Unfortunately, the receivables turnover ratio data is unavailable, making it challenging to assess how effectively Nextera Energy Inc collects outstanding receivables. A higher receivables turnover ratio usually suggests good collection practices and effective credit policies.

3. Payables Turnover:
Similar to receivables turnover, the payables turnover ratio data is missing, making it difficult to evaluate the efficiency of Nextera Energy Inc in paying its suppliers. A higher payables turnover ratio typically indicates that the company is taking longer to pay its outstanding bills, which can be an indicator of good cash flow management.

4. Working Capital Turnover:
The data for the working capital turnover ratio is also not available, preventing an assessment of how efficiently Nextera Energy Inc is utilizing its working capital to generate sales. A higher working capital turnover ratio signifies effective management of working capital in supporting revenue generation.

In conclusion, while the inventory turnover ratio provides some insights into Nextera Energy Inc's efficiency in managing inventory, the missing data for receivables turnover, payables turnover, and working capital turnover ratios limits a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Nextera Energy Inc's Days of Inventory on Hand (DOH) ratio has fluctuated over the years, ranging from a low of 63.18 days to a high of 77.96 days. This ratio indicates the number of days it takes for the company to sell its inventory. A decreasing trend in DOH reflects more efficient inventory management as the company is able to sell its inventory faster.

The Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not provided in the data, which limits our ability to analyze Nextera Energy Inc's efficiency in collecting receivables and paying its suppliers.

Overall, based on the information provided, Nextera Energy Inc's activity ratios suggest varying levels of efficiency in managing its inventory but additional data on DSO and Payables would provide further insights into the company's overall working capital management.

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Long-term

Nextera Energy Inc's Fixed Asset Turnover ratio has shown fluctuations over the past few years, ranging from a low of 0.16 to a high of 0.31. This ratio measures how efficiently the company is generating revenue from its fixed assets, such as property, plant, and equipment. The decreasing trend in the Fixed Asset Turnover ratio indicates that the company may be becoming less efficient in utilizing its fixed assets to generate sales.

In contrast, Nextera Energy Inc's Total Asset Turnover ratio has also displayed variability, with values ranging from 0.11 to 0.16. This ratio assesses the company's ability to generate sales from all its assets, not just fixed assets. The decreasing trend in the Total Asset Turnover ratio suggests that the company may be experiencing challenges in efficiently utilizing all its assets to generate revenue.

Overall, the declining trends in both Fixed Asset Turnover and Total Asset Turnover ratios indicate a potential inefficiency in Nextera Energy Inc's asset utilization and revenue generation capabilities. Management may need to assess operational strategies to improve efficiency and maximize returns on assets in the long term.