Northwest Natural Gas Co (NWN)

Short-term

Turnover ratios

Based on the provided data for Northwest Natural Gas Co, we can analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period the inventory is sold and replaced.
- Northwest Natural Gas Co's inventory turnover has decreased from 11.08 in 2020 to 7.06 in 2024.
- A decreasing trend in inventory turnover could suggest issues with sales, production, or inventory management efficiency.

2. Receivables Turnover:
- The receivables turnover ratio reflects how many times a company collects its average accounts receivable balance during a period.
- For Northwest Natural Gas Co, the data shows that receivables turnover information is not available for the years 2020 to 2024.

3. Payables Turnover:
- The payables turnover ratio indicates how many times a company pays off its average accounts payable balance during a period.
- Similar to receivables turnover, data on payables turnover for Northwest Natural Gas Co is not provided for the years 2020 to 2024.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales revenue.
- The data suggests that information on working capital turnover is not available for Northwest Natural Gas Co for the years 2020 to 2024.

In conclusion, based on the available information on activity ratios, it is evident that while inventory turnover has shown a declining trend, details on receivables turnover, payables turnover, and working capital turnover are not provided. Further analysis and additional data would be necessary to gain a comprehensive understanding of Northwest Natural Gas Co's activity efficiency and financial performance.

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Average number of days

Northwest Natural Gas Co's activity ratios show trends in the efficiency of managing inventory, collecting receivables, and paying payables.

1. Days of Inventory on Hand (DOH):
- The DOH increased from 32.93 days in 2020 to 51.68 days in 2024, indicating that the company held inventory for a longer period before sale.
- Inventory management may have become less efficient over the years, tying up more capital and potentially leading to higher storage costs.

2. Days of Sales Outstanding (DSO) and Number of Days of Payables:
- Data for DSO and payables days were not provided, making it difficult to assess the efficiency in collecting receivables and paying suppliers.

Overall, the increase in the Days of Inventory on Hand suggests a need for the company to focus on improving inventory management to enhance liquidity and profitability. Further information on DSO and payables days would provide a more comprehensive view of Northwest Natural Gas Co's activity ratios and efficiency in managing its working capital.

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Long-term

Northwest Natural Gas Co's long-term activity ratios show the efficiency of the company in managing its assets over the years.

1. Fixed Asset Turnover: This ratio measures the company's ability to generate revenue from its investment in fixed assets. The trend indicates that from 2020 to 2022, the fixed asset turnover has been slightly increasing, showing an improvement in utilizing fixed assets to generate sales. However, no data is available for 2023 and 2024.

2.Total Asset Turnover: This ratio measures how efficiently the company is using all its assets to generate sales. The total asset turnover has shown a slight increase from 0.21 in 2020 and 2021 to 0.22 in 2022, and a significant increase to 0.25 in 2023. This suggests that the company has been more efficient in generating sales in recent years using its total assets.

Overall, the trend in the long-term activity ratios of Northwest Natural Gas Co indicates a moderate improvement in asset utilization efficiency over the years, with a notable increase in total asset turnover in 2023. However, the absence of data for 2023 and 2024 hinders a complete analysis of the company's long-term asset management efficiency.