Enviri Corporation (NVRI)

Short-term

Turnover ratios

Based on the provided data for Enviri Corporation's activity ratios, we can see the following trends:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. Enviri Corporation's inventory turnover has shown variability over the years, starting at 8.67 in 2020 and peaking at 21.14 in 2021 before gradually decreasing to 10.45 in 2024. Overall, the company has exhibited a generally high turnover of inventory, indicating effective management in converting inventory into sales.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly the company collects payment on credit sales. In this case, the data indicates that receivables turnover information is unavailable for all years provided. This might indicate that Enviri Corporation does not extend credit sales to customers, or there may be other factors affecting the ability to collect receivables in a timely manner.

3. Payables Turnover:
- The payables turnover ratio assesses how efficiently a company pays its suppliers. Similarly to receivables turnover, no data is available for payables turnover for Enviri Corporation across the years, making it difficult to evaluate the company's payment practices towards its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Enviri Corporation has shown consistent improvement in this ratio over the years, from 6.71 in 2020 to 16.25 in 2024. This trend indicates that the company is effectively utilizing its working capital to support its operations and fuel growth.

In conclusion, Enviri Corporation demonstrates strong inventory turnover and working capital turnover ratios, suggesting effective management of inventory and working capital. However, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's efficiency in collecting receivables and paying suppliers.

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Average number of days

Enviri Corporation's days of inventory on hand (DOH) has decreased from 42.08 days in December 2020 to 17.26 days in December 2021, indicating a more efficient turnover of inventory. However, this metric slightly increased to 19.12 days in December 2022 and 19.28 days in December 2023 before rising further to 34.92 days by December 2024, suggesting a potential slowdown in inventory turnover.

In contrast, the days of sales outstanding (DSO) and number of days of payables data are not provided for the years 2020 to 2024. Therefore, the analysis of accounts receivable and accounts payable turnover efficiency based on these ratios is not possible.

Overall, based on the days of inventory on hand trend, it seems that Enviri Corporation may need to focus on managing its inventory levels effectively to improve its working capital and overall operational efficiency in the future.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates sales using its fixed assets. Enviri Corporation's fixed asset turnover has shown a slight increase from 2.79 in 2020 to 2.83 in 2021, indicating a good utilization of fixed assets in generating revenue. However, there was a decline in this ratio to 2.49 in 2022, suggesting a potential decrease in the efficiency of utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how well a company utilizes all assets to generate sales revenue. Enviri Corporation's total asset turnover ratio has fluctuated over the years, from 0.62 in 2020 to 0.61 in 2021, then improving to 0.68 in 2022 and further to 0.72 in 2023, before a significant increase to 0.88 in 2024. This indicates an overall improvement in the company's ability to generate revenue relative to its total assets.

In conclusion, while Enviri Corporation's fixed asset turnover ratio has shown some variability, the total asset turnover ratio has generally displayed an upward trend, reflecting improved efficiency in utilizing assets to generate sales revenue over the years.