NV5 Global Inc (NVEE)

Short-term

Turnover ratios

Inventory turnover is not provided in the data table, so we cannot analyze it.

Receivables turnover has been on an increasing trend over the years, indicating that NV5 Global Inc is collecting its accounts receivables more efficiently. This suggests improved credit policies or better management of accounts receivables.

The payables turnover ratio has fluctuated over the years but generally shows that the company is taking longer to pay its suppliers. A higher payables turnover ratio could imply more favorable credit terms with suppliers or potential liquidity constraints.

Working capital turnover has also shown an increasing trend, suggesting that NV5 Global Inc is generating more revenue relative to its working capital. This can be a positive sign of operational efficiency, indicating that the company is effectively using its working capital to generate sales.

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Average number of days

Days of inventory on hand (DOH) is not provided in the table, so we cannot analyze the efficiency of NV5 Global Inc in managing its inventory levels.

Days of sales outstanding (DSO) measures how long it takes for the company to collect its accounts receivable. A lower DSO indicates faster collection of receivables, which is generally preferred. NV5 Global Inc has shown improvement in this ratio over the years, with a decreasing trend from 94.40 days in 2019 to 43.64 days in 2023. This suggests that the company has been able to collect its receivables more efficiently.

Number of days of payables measures how long it takes for the company to pay its suppliers. A higher number of days indicates that the company is taking longer to pay its payables, which can be seen as a positive from a cash flow perspective. NV5 Global Inc has shown fluctuation in this ratio, with a peak of 32.91 days in 2021 and a slight decrease to 25.82 days in 2023. This could indicate that the company is managing its payables more effectively.

Overall, NV5 Global Inc has shown improvement in its days of sales outstanding ratio, indicating better efficiency in collecting receivables. The number of days of payables has fluctuated but generally improved in the most recent years, which could be seen as a positive sign for cash management.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating sales from fixed assets. NV5 Global Inc has demonstrated a decreasing trend in fixed asset turnover over the past five years, from 19.69 in 2019 to 27.82 in 2023. Despite the fluctuation, the company's fixed asset turnover has generally remained at a relatively high level, indicating efficient utilization of fixed assets to generate revenue.

On the other hand, total asset turnover ratio reflects how effectively a company is using all its assets to generate sales. NV5 Global Inc's total asset turnover has shown some variability over the same period, with values ranging from 0.57 in 2019 to 1.20 in 2022. The ratio peaked in 2022, suggesting that the company effectively generated sales with its total assets during that period. However, in 2023, the total asset turnover decreased to 1.09, indicating a slight decline in the efficiency of utilizing assets to generate revenue compared to the previous year.

Overall, NV5 Global Inc has shown a mixed performance in terms of its long-term activity ratios. The company has demonstrated strong efficiency in generating sales from fixed assets, even though there has been some variability in total asset turnover. Monitoring these ratios over time can provide valuable insights into the company's operational efficiency and asset utilization strategies.