Newmont Goldcorp Corp (NEM)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	5.56	3.33	4.94	4.34	4.09
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	3.92	7.80	3.32	2.42	2.24

Based on the data provided, we can analyze the activity ratios of Newmont Goldcorp Corp as follows:

1. Inventory Turnover: The inventory turnover ratio indicates how efficiently the company manages its inventory. From 2020 to 2024, Newmont Goldcorp Corp's inventory turnover improved gradually from 4.09 to 5.56. A higher inventory turnover ratio generally indicates that the company is selling goods more quickly and efficiently.

2. Receivables Turnover: Unfortunately, there is no data available for the receivables turnover ratio for Newmont Goldcorp Corp for the years 2020 to 2024. This ratio is used to assess how effectively the company is collecting payments from its customers.

3. Payables Turnover: Similarly, there is no data provided for the payables turnover ratio for the company during the specified period. The payables turnover ratio helps in understanding how quickly the company pays off its suppliers.

4. Working Capital Turnover: The working capital turnover ratio measures how well a company utilizes its working capital to generate sales. Newmont Goldcorp Corp's performance in this area fluctuated over the years, with a notable increase from 2021 to 2023 (2.42 to 7.80) and then a decline in 2024 to 3.92. A higher working capital turnover ratio suggests more efficiency in utilizing working capital to support business operations and generate revenue.

In summary, Newmont Goldcorp Corp demonstrated an improvement in inventory turnover over the years, while data for receivables turnover and payables turnover were not available. The working capital turnover ratio showed fluctuations, indicating changes in how effectively the company utilized its working capital to generate sales during the period under review.

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	65.70	109.50	73.94	84.08	89.33
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

The activity ratios of Newmont Goldcorp Corp indicate the efficiency of the company in managing its inventory, receivables, and payables turnover.

1. Days of Inventory on Hand (DOH): Newmont Goldcorp Corp's average days of inventory on hand have shown a decreasing trend over the past five years. In 2024, the company had 65.70 days of inventory on hand, which indicates that it takes approximately 65.70 days for the company to convert its inventory into sales. A lower DOH value generally suggests efficient inventory management.

2. Days of Sales Outstanding (DSO): Data for Days of Sales Outstanding is not provided for any of the years, indicating that information on the company's average collection period for accounts receivable is not available. DSO is a measure of how efficiently a company is collecting on its credit sales.

3. Number of Days of Payables: Similar to DSO, no data is available for the Number of Days of Payables for any of the years. This metric would have indicated the average number of days it takes for the company to pay its suppliers or vendors. A longer payables period can improve cash flow but may strain relationships with suppliers.

Overall, while the information on inventory management is somewhat positive with decreasing DOH, the lack of data on DSO and payables turnover limits a comprehensive analysis of the company's activity ratios related to accounts receivables and payables.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	6.94	6.89	6.74
Total asset turnover	0.33	0.21	0.31	0.30	0.28

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate sales. An increase in this ratio over time indicates improved efficiency in generating sales from fixed assets. For Newmont Goldcorp Corp, the fixed asset turnover has shown a consistent improvement from 6.74 in 2020 to 6.89 in 2021 and further to 6.94 in 2022. This suggests that the company is effectively utilizing its fixed assets to generate revenue.

Total asset turnover ratio, on the other hand, measures how efficiently a company is generating sales from its total assets. An increase in this ratio generally indicates improved efficiency in generating sales from total assets. Newmont Goldcorp Corp's total asset turnover has varied, with a slight increase from 0.28 in 2020 to 0.30 in 2021 and further to 0.31 in 2022. However, there was a dip to 0.21 in 2023 before rebounding to 0.33 in 2024. The fluctuation in total asset turnover may signify changes in the company's asset utilization efficiency over the years.

Overall, the trend in both fixed asset turnover and total asset turnover ratios for Newmont Goldcorp Corp suggests that the company has been improving its efficiency in utilizing fixed assets and total assets to generate sales, albeit with some fluctuations in the total asset turnover ratio over the years.