Enviri Corporation (NVRI)

Short-term

Turnover ratios

Inventory Turnover:
Enviri Corp's inventory turnover has been relatively stable over the past five years, ranging from 7.29 to 21.14. A higher ratio indicates that the company is selling its inventory more efficiently. The increasing trend from 2019 to 2021 suggests that the company has managed its inventory better, but a slight decrease in 2023 needs further investigation to understand the reasons behind it.

Receivables Turnover:
The receivables turnover ratio measures how efficiently a company collects its outstanding receivables. Enviri Corp's ratio has improved gradually over the years, from 4.22 in 2020 to 6.58 in 2023. This indicates that the company has been more effective in collecting payments from its customers, which is a positive sign for its liquidity and cash flow management.

Payables Turnover:
The payables turnover ratio reflects how quickly a company pays off its suppliers. Enviri Corp's payables turnover has also shown a generally increasing trend, indicating that the company has been managing its payables more effectively. This can potentially help in maintaining good relationships with suppliers and could also impact the company's working capital management positively.

Working Capital Turnover:
The working capital turnover ratio measures how efficiently a company uses its working capital to generate sales. Enviri Corp has shown fluctuations in this ratio over the years, with a notable increase in 2023. A higher ratio implies that the company is able to generate more revenue with its working capital, which can be a sign of effective capital utilization. However, it is essential to assess the reasons behind these fluctuations to get a comprehensive understanding of the company's operational efficiency.

In summary, Enviri Corp's activity ratios reflect improvements in inventory management, receivables collection, payables management, and working capital utilization over the years. These trends suggest that the company has been focusing on enhancing its operational efficiency, which can have positive implications for its overall financial performance and sustainability.

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Average number of days

Activity ratios provide insight into how efficiently a company manages its resources. Let's analyze the activity ratios of Enviri Corp based on the data provided:

1. Days of Inventory on Hand (DOH):
- The trend in DOH from 2019 to 2023 shows a significant improvement in inventory management efficiency.
- In 2019 and 2020, the company took approximately 50 days and 42 days, respectively, to sell its inventory.
- However, in 2021, DOH decreased to 17.26 days, indicating a more efficient inventory turnover.
- This trend continued in 2022 and 2023 with DOH figures of 19.12 days and 19.28 days, respectively, suggesting a stable and efficient inventory management process.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for a company to collect its accounts receivable.
- Enviri Corp's DSO has shown fluctuation over the years, ranging from 55.50 days in 2023 to 86.49 days in 2020.
- The decreasing trend from 2020 to 2023 indicates a positive development in collecting receivables more swiftly.
- However, the company may still seek to further reduce DSO to improve cash flow and working capital management.

3. Number of Days of Payables:
- This ratio illustrates the number of days a company takes to pay its suppliers.
- Enviri Corp's days of payables have fluctuated between 44.37 days and 56.38 days from 2019 to 2023.
- A decreasing trend in days of payables reflects a potential improvement in managing supplier payments more efficiently.
- The company has been relatively consistent in paying its suppliers over the years, with no significant downward or upward trends observed.

In conclusion, Enviri Corp has shown improvements in inventory management efficiency and accounts receivable collection over the years. However, there may be opportunities to further enhance working capital management by optimizing supplier payment cycles.

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Long-term

The long-term activity ratios of Enviri Corp, specifically the fixed asset turnover and total asset turnover, show the efficiency of the company in generating sales from its assets over the years.

1. Fixed asset turnover:
- The fixed asset turnover ratio has been gradually increasing from 2.68 in 2019 to 3.12 in 2023.
- This indicates that Enviri Corp has been generating more sales revenue for each dollar invested in fixed assets over the years.
- The increasing trend in fixed asset turnover suggests improved efficiency in utilizing the company's long-term assets to generate sales.

2. Total asset turnover:
- The total asset turnover ratio fluctuated slightly over the years, with a low of 0.61 in 2021 and a high of 0.72 in 2023.
- Despite the fluctuations, the total asset turnover ratio has generally shown an upward trend over the period.
- This indicates that Enviri Corp has been able to generate more sales relative to its total assets, which can be a positive sign of operational efficiency and asset utilization.

In conclusion, the increasing trend in fixed asset turnover and the overall improvement in total asset turnover suggest that Enviri Corp has become more efficient in using its assets to generate sales revenue over the years. These ratios indicate that the company is effectively managing its long-term assets to drive business activity and generate returns for its investors.