Northwest Natural Gas Co (NWN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.39 | 1.60 | 2.20 | 2.52 | 2.83 |
| Receivables turnover | 5.96 | 4.07 | 4.74 | 5.20 | 6.07 |
| Payables turnover | 1.32 | 0.98 | 1.27 | 1.56 | 1.51 |
| Working capital turnover | — | — | — | — | — |
Northwest Natural Holding Co's activity ratios provide insights into how efficiently the company manages its inventory, receivables, and payables.
1. Inventory Turnover: The inventory turnover ratio has been relatively stable over the past five years, ranging from 4.30 to 5.10. This indicates that the company is effectively managing its inventory levels and converting inventory into sales. A higher turnover ratio suggests that the company is efficiently selling its inventory.
2. Receivables Turnover: Northwest Natural Holding Co's receivables turnover ratio has shown some fluctuations over the years, with a significant increase in 2023 compared to the previous year. This suggests that the company is collecting its accounts receivable more efficiently, potentially improving its cash flow and liquidity. A higher turnover ratio indicates that the company is converting its credit sales into cash quickly.
3. Payables Turnover: The payables turnover ratio has also displayed variations over the years, with a noticeable increase in 2023 compared to the previous year. This indicates that the company is taking longer to pay its suppliers, potentially improving its working capital management. A lower turnover ratio suggests that the company is taking longer to pay its bills.
4. Working Capital Turnover: Unfortunately, specific data for the working capital turnover ratio is not provided in the table, making it impossible to assess how efficiently Northwest Natural Holding Co is utilizing its working capital to generate sales revenue. This ratio could provide valuable insights into the company's overall operational efficiency.
Overall, by analyzing these activity ratios, it appears that Northwest Natural Holding Co has been effectively managing its inventory, collecting receivables, and paying its creditors, which are all essential aspects of its operational efficiency and financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 262.47 | 227.86 | 165.55 | 144.83 | 128.84 |
| Days of sales outstanding (DSO) | days | 61.27 | 89.60 | 77.06 | 70.18 | 60.11 |
| Number of days of payables | days | 276.12 | 372.22 | 288.26 | 233.77 | 241.48 |
Days of inventory on hand (DOH) for Northwest Natural Holding Co have been fluctuating over the past five years, ranging from 71.50 days in 2021 to 84.86 days in 2019. The company's inventory turnover seems to have improved in 2023 compared to the previous year, indicating a more efficient management of inventory.
Days of sales outstanding (DSO) have also shown variability over the years, with the lowest DSO of 60.11 days in 2019 and the highest DSO of 89.60 days in 2022. The decrease in DSO in 2023 compared to 2022 suggests that the company has been able to collect its accounts receivable more quickly, which is a positive sign for its liquidity.
The number of days of payables reflects the company's ability to manage its trade payables. Northwest Natural Holding Co has been able to extend its payment period over the years, with the number of days of payables increasing from 136.09 days in 2020 to 166.68 days in 2021. This indicates that the company has been taking advantage of its trade credit terms effectively.
Overall, Northwest Natural Holding Co's activity ratios show a mixed performance over the past five years. The company seems to have improved its inventory management and accounts receivable collection, while also effectively managing its trade payables to enhance its liquidity position.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.36 | 0.33 | 0.30 | 0.29 | 0.31 |
| Total asset turnover | 0.25 | 0.22 | 0.21 | 0.21 | 0.22 |
Northwest Natural Holding Co's long-term activity ratios indicate its efficiency in utilizing fixed and total assets to generate revenue. The fixed asset turnover has been gradually improving from 0.31 in 2019 to 0.36 in 2023, suggesting that the company has been more effective in generating sales from its fixed assets over the years. This improvement indicates better asset utilization and operational efficiency.
Similarly, the total asset turnover has also shown a positive trend, increasing from 0.22 in 2019 to 0.25 in 2023. This indicates that the company is becoming more efficient in generating revenue from all its assets, both fixed and current, over the years.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios reflects Northwest Natural Holding Co's improving efficiency in utilizing its assets to generate sales, which is a positive sign for the company's long-term financial health and profitability.