National Fuel Gas Company (NFG)

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	5.88	6.84	9.72	12.25	8.79	7.13	9.45	7.98	4.90	3.35	4.29	5.03	4.23	2.94	4.00	4.21	1.90	1.83	2.45	2.94
Receivables turnover	183.00	—	—	194.90	53.22	—	—	247.73	87.02	—	—	627.02	78.71	—	—	105.10	10.36	12.10	9.45	7.11
Payables turnover	4.16	3.66	6.49	5.31	3.52	2.91	3.38	3.24	2.64	1.70	2.51	2.72	3.12	1.87	2.79	2.24	1.05	1.07	1.22	0.92
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	29.57	—	—	3.17	—	—	—	229.17	22.85

National Fuel Gas Co.'s inventory turnover has shown fluctuations over the past quarters, ranging from a low of 4.33 in Q1 2024 to a high of 9.77 in Q2 2023. This indicates that the company is effectively managing its inventory levels, although there may be room for improvement in the efficiency of its inventory turnover.

Regarding receivables turnover, National Fuel Gas Co. has demonstrated a consistent ability to collect outstanding receivables in a timely manner, with ratios ranging from 5.01 to 11.24 over the past eight quarters. This suggests that the company has efficient credit policies and processes in place.

The payables turnover ratio has also varied, from a low of 2.19 in Q4 2022 to a high of 5.16 in Q3 2023. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can sometimes indicate favorable credit terms or liquidity management.

Unfortunately, no information is provided for the working capital turnover ratio, which measures a company's ability to generate revenue from its working capital. Therefore, we can't draw any conclusions about National Fuel Gas Co.'s efficiency in utilizing its working capital.

Overall, National Fuel Gas Co. appears to have solid management of its inventory and receivables, while the payables turnover ratios suggest it is effectively managing its payment obligations to suppliers. The absence of the working capital turnover data limits a comprehensive analysis in that specific area.

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	62.04	53.38	37.56	29.80	41.53	51.16	38.64	45.75	74.48	109.08	84.99	72.56	86.25	124.09	91.30	86.80	192.38	199.15	148.97	124.30
Days of sales outstanding (DSO)	days	1.99	—	—	1.87	6.86	—	—	1.47	4.19	—	—	0.58	4.64	—	—	3.47	35.22	30.17	38.63	51.34
Number of days of payables	days	87.66	99.69	56.22	68.79	103.80	125.40	108.06	112.56	138.02	214.66	145.70	134.35	117.16	195.32	130.69	162.92	347.18	340.40	299.57	395.83

The activity ratios of National Fuel Gas Co. indicate how efficiently the company manages its assets and liabilities related to its operations.

The Days of Inventory on Hand (DOH) measure how long, on average, it takes for the company to sell its inventory. A lower DOH is generally preferred as it suggests faster inventory turnover. In the latest quarter (Q1 2024), National Fuel Gas Co. had 84.29 days of inventory on hand, indicating a significant increase from the previous quarter. The company may need to assess its inventory management practices to improve efficiency.

The Days of Sales Outstanding (DSO) measure how long it takes the company to collect its accounts receivable. A lower DSO is favorable as it indicates quicker cash collection. In the most recent quarter, the DSO for National Fuel Gas Co. was 45.82 days, showing an increase from the previous quarter. This may signify potential issues with collecting receivables promptly.

The Number of Days of Payables represents how long it takes the company to pay its suppliers and creditors. A higher number of days of payables indicates that the company is taking longer to settle its payables. In the latest quarter, National Fuel Gas Co. had 119.11 days of payables, showing a decrease from the prior quarter. This suggests that the company is paying its obligations more promptly, which could impact its liquidity position.

Overall, National Fuel Gas Co. should analyze these activity ratios to ensure optimal management of its working capital cycle, balanced between inventory, receivables, and payables, to maintain operational efficiency and financial health.

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	0.27	0.30	0.32	0.34	0.34	0.33	0.33	0.30	0.28	0.27	0.27	0.26	0.26	0.26	0.28	0.29	0.29	0.31	0.32	0.32
Total asset turnover	0.24	0.26	0.28	0.29	0.28	0.28	0.26	0.26	0.24	0.23	0.23	0.23	0.22	0.22	0.22	0.24	0.25	0.26	0.27	0.27

National Fuel Gas Co.'s fixed asset turnover has shown a decreasing trend over the past eight quarters, dropping from 0.30 in Q4 2023 to 0.27 in Q1 2024. This indicates that the company generated $0.27 in sales for every $1 invested in fixed assets in Q1 2024. Similarly, the total asset turnover of the company also decreased from 0.26 in Q4 2023 to 0.24 in Q1 2024, indicating that the company generated $0.24 in sales for every $1 invested in total assets in Q1 2024.

The declining trend in both fixed asset turnover and total asset turnover ratios suggests that National Fuel Gas Co. is becoming less efficient in utilizing its assets to generate sales revenue over time. This could be a concern as it may indicate potential inefficiencies in the company's operations or a decline in the effectiveness of its asset management strategies. Further analysis and comparison with industry benchmarks may be required to fully assess the implications of these decreasing long-term activity ratios.