Newmont Goldcorp Corp (NEM)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	57.78	68.80	49.18	37.69	3.95
Receivables turnover	9.48	32.26	36.12	25.14	25.93
Payables turnover	9.63	13.37	12.53	11.31	1.38
Working capital turnover	7.68	3.29	2.41	2.20	2.49

Newmont Corp's activity ratios provide insights into its efficiency in managing its inventory, receivables, payables, and working capital over the past five years.

1. Inventory Turnover: The inventory turnover ratio has ranged from 4.03 to 6.61 over the last five years. The declining trend from 2022 to 2023 suggests that Newmont Corp is taking longer to sell its inventory, which could indicate inefficient inventory management or a slowdown in sales. However, the ratio remains relatively steady compared to previous years.

2. Receivables Turnover: The receivables turnover ratio has shown significant fluctuations, ranging from 9.63 to 36.27. The sharp increase in 2021 indicates that the company collected its accounts receivable more frequently that year. The subsequent decline in 2022 and further in 2023 might indicate changes in the company's credit policies or the nature of its customer base.

3. Payables Turnover: Newmont Corp's payables turnover ratio has remained relatively stable, fluctuating between 6.98 and 10.49. This suggests that the company has been efficient in paying its suppliers over the years. Consistency in this ratio indicates that the company has maintained a balanced approach in managing its payables.

4. Working Capital Turnover: The working capital turnover ratio has fluctuated, with the highest value in 2023 at 7.80 and the lowest in 2019 at 2.24. A higher ratio indicates that Newmont Corp is generating sales more efficiently with less working capital investment. The increase in 2023 could signify improved operational efficiency or better utilization of working capital resources.

Overall, Newmont Corp's activity ratios reflect varying degrees of efficiency in managing different aspects of its operations over the past five years. The company may need to further analyze the underlying factors contributing to these ratios to identify areas for improvement and maintain a healthy balance between liquidity and profitability.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	6.32	5.31	7.42	9.68	92.47
Days of sales outstanding (DSO)	days	38.49	11.31	10.11	14.52	14.07
Number of days of payables	days	37.90	27.30	29.12	32.26	263.72

Days of Inventory on Hand (DOH) measures how long a company takes to sell its inventory. Newmont Corp's DOH has increased over the past five years, from 71.24 days in 2019 to 90.61 days in 2023. This indicates that Newmont is holding onto its inventory for a longer period before selling it, which may tie up capital.

Days of Sales Outstanding (DSO) measures how long it takes for a company to collect its accounts receivable. Newmont Corp's DSO has fluctuated over the years, with a peak of 37.92 days in 2023. This suggests that Newmont may be experiencing delays in collecting payments from its customers.

Number of Days of Payables indicates how long a company takes to pay its suppliers. Newmont Corp's days of payables have also shown some variability, ranging from 34.79 days in 2021 to 52.31 days in 2023. An increase in days of payables could suggest that Newmont is taking longer to settle its payables, which may benefit its cash flow but could strain relationships with suppliers.

Overall, Newmont Corp's activity ratios show trends that could impact its working capital management. The company may need to evaluate its inventory management, accounts receivable collection processes, and payment terms with suppliers to improve efficiency and optimize cash flow.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	0.31	0.49	0.50	0.46	0.38
Total asset turnover	0.21	0.31	0.30	0.27	0.24

The long-term activity ratios of Newmont Corp have shown varying trends over the past five years. The fixed asset turnover ratio has been fluctuating, starting from 0.39 in 2019, increasing to 0.51 in 2021, and then decreasing to 0.31 in 2023. This ratio indicates that for every dollar invested in fixed assets, the company generated $0.31 in sales in 2023, down from $0.51 in 2021.

On the other hand, the total asset turnover ratio has also shown fluctuations but generally increasing over the five-year period. The ratio stood at 0.24 in 2019 and reached 0.21 in 2023. This suggests that the company generated $0.21 in sales for each dollar of total assets in 2023, compared to $0.24 in 2019.

Overall, the fixed asset turnover ratio indicates a decline in the efficiency of utilizing fixed assets to generate sales, while the total asset turnover ratio shows an overall improvement in utilizing total assets to generate sales over the past five years. This analysis suggests that Newmont Corp may need to focus on optimizing the utilization of its fixed assets to improve its operational efficiency further.