Nextera Energy Inc (NEE)

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	2.94	2.79	2.34	2.33	2.32	2.35	2.50	2.56	2.48	2.22	2.40	2.37	2.50	2.74	2.91	2.90	2.94	2.67	2.62	2.61
Receivables turnover	5.44	5.02	5.25	6.03	4.44	4.16	4.13	4.66	4.51	4.73	5.21	5.21	5.60	5.30	6.05	6.77	6.28	5.34	5.45	5.39
Payables turnover	3.33	2.93	2.37	3.07	2.55	2.22	2.45	2.58	2.81	2.77	3.37	3.61	3.91	3.44	3.95	4.48	3.39	3.74	4.34	5.20
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

NextEra Energy Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 2.59 to 3.34. This indicates that the company is efficiently managing its inventory levels, with a slight decrease from Q1 2023 to Q4 2023.

The receivables turnover has shown a fluctuating trend, with significant improvements in Q4 2023 compared to the previous quarters. This suggests that NextEra Energy Inc is collecting its receivables more efficiently, with a notable increase in turnover from Q3 2023 to Q4 2023.

On the other hand, the payables turnover ratio has also exhibited some variability, but with a general downward trend. This indicates that the company is taking longer to pay its suppliers, with a notable decrease in turnover from Q2 2023 to Q1 2023.

Unfortunately, the data did not provide information on the working capital turnover, making it challenging to assess how effectively NextEra Energy Inc is using its working capital to generate sales. It would be beneficial to have this information for a more comprehensive analysis of the company's activity ratios.

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	124.22	130.90	155.66	156.62	157.29	155.50	146.04	142.83	147.38	164.78	151.86	154.27	146.26	133.16	125.52	125.80	124.03	136.46	139.38	139.59
Days of sales outstanding (DSO)	days	67.06	72.67	69.53	60.51	82.19	87.65	88.37	78.34	80.99	77.24	70.03	70.01	65.24	68.93	60.30	53.89	58.15	68.31	66.97	67.70
Number of days of payables	days	109.77	124.40	154.04	119.08	143.14	164.18	148.88	141.57	130.10	131.90	108.19	101.18	93.39	106.22	92.37	81.39	107.59	97.62	84.19	70.19

To analyze NextEra Energy Inc's activity ratios, we will look at its Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days it takes for the company to sell its inventory.
- NextEra Energy Inc's DOH has shown variations over the quarters, ranging from 109.39 days to 140.86 days in Q4 2022 and Q4 2023, respectively.
- A high DOH could indicate that the company is holding excess inventory, which may lead to higher storage costs and potential obsolescence risks.

2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects how long it takes for the company to collect cash from its credit sales.
- NextEra Energy Inc's DSO has also fluctuated, with values ranging from 57.91 days to 98.05 days in Q1 2023 and Q3 2022, respectively.
- A higher DSO suggests that the company is taking longer to collect payments, which could impact its cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables measures how long it takes for the company to pay its suppliers.
- NextEra Energy Inc's number of days of payables varied significantly, from 368.85 days to 568.80 days in Q2 2023 and Q4 2023, respectively.
- A longer payment period could indicate that the company is using its suppliers' financing to manage its cash flow, but it may also strain supplier relationships if excessively prolonged.

In conclusion, NextEra Energy Inc's activity ratios exhibit some fluctuations across the quarters, which may reflect changes in inventory management, collection efficiency, and payment practices. Further analysis and comparison with industry benchmarks would help determine the effectiveness of the company's working capital management strategies.

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	0.20	0.21	0.20	0.21	0.21	0.20	0.20	0.20	0.19	0.18	0.18	0.18	0.19	0.20	0.20	0.21	0.21	0.23	0.22	0.21
Total asset turnover	0.14	0.15	0.14	0.14	0.14	0.14	0.14	0.14	0.13	0.13	0.13	0.13	0.13	0.14	0.14	0.15	0.15	0.16	0.15	0.15

NextEra Energy Inc's long-term activity ratios suggest a stable performance in efficiently utilizing its fixed assets and total assets over the quarters analyzed. The fixed asset turnover ratio has shown a gradual improvement from 0.16 in Q1 2022 to 0.22 in Q4 2023, indicating that the company is generating more revenue from its fixed assets. This indicates that NextEra Energy is effectively utilizing its long-term assets to generate sales.

Similarly, the total asset turnover ratio has also shown an upward trend, increasing from 0.11 in Q1 2022 to 0.16 in Q4 2023. This suggests that the company is generating more sales revenue relative to its total assets, which is a positive indicator of operational efficiency.

Overall, the consistent improvement in both fixed asset turnover and total asset turnover ratios reflects NextEra Energy's ability to efficiently utilize its long-term assets to generate revenue, which bodes well for its financial performance and long-term sustainability.