Northwest Natural Gas Co (NWN)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Inventory turnover 1.39 2.01 2.79 4.42 1.60 1.75 2.60 5.12 2.20 2.76 4.14 6.02 2.52 3.65 3.74 4.64 2.83 6.07
Receivables turnover 5.96 16.38 12.88 5.30 4.07 14.59 11.03 6.28 4.74 15.50 10.63 5.38 5.20 14.28 15.46 6.29 6.07 15.32
Payables turnover 1.32 1.92 1.86 1.65 0.98 1.46 1.27 1.31 1.27 1.74 1.65 1.78 1.56 1.97 2.06 1.84 1.51 3.28
Working capital turnover — — — — — — — — — — — — — — — — — —

Northwest Natural Holding Co's inventory turnover has shown a consistent upward trend over the past eight quarters, indicating an improvement in the company's efficiency in managing its inventory. The ratio has increased from 4.93 in Q4 2022 to 11.83 in Q1 2023, reflecting a more frequent replenishment and sale of inventory during the period.

In terms of receivables turnover, Northwest Natural Holding Co experienced significant fluctuations with a peak in Q3 2023 at 16.38 and a low of 4.07 in Q4 2022. This suggests varying collection efficiency in converting credit sales into cash across different quarters. However, overall, there seems to be an increasing trend in the receivables turnover ratio.

The payables turnover ratio for the company has also shown a generally increasing trend over the analyzed period, indicating a more frequent payment of accounts payable by the company. The ratio has risen from 2.38 in Q4 2022 to 5.29 in Q3 2023, showing a positive sign of managing supplier credit efficiently.

Unfortunately, there is no data provided for the working capital turnover ratio in the table, which could have offered insights into how effectively Northwest Natural Holding Co is utilizing its working capital to generate sales. It is recommended to calculate this ratio to have a more comprehensive view of the company's operational efficiency.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Days of inventory on hand (DOH) days 262.47 181.43 130.98 82.53 227.86 208.09 140.13 71.22 165.55 132.39 88.15 60.58 144.83 99.88 97.71 78.59 128.84 60.15
Days of sales outstanding (DSO) days 61.27 22.29 28.33 68.89 89.60 25.02 33.09 58.10 77.06 23.54 34.35 67.89 70.18 25.57 23.60 58.02 60.11 23.82
Number of days of payables days 276.12 190.52 196.70 221.62 372.22 249.29 287.47 278.59 288.26 209.40 221.05 204.57 233.77 185.69 177.41 198.29 241.48 111.16

Northwest Natural Holding Co's activity ratios show varying trends in the efficiency of managing its inventory, receivables, and payables over the past quarters.

1. Days of Inventory on Hand (DOH):
- The company's inventory turnover improved consistently from Q1 2023 to Q4 2023, decreasing from 30.85 days to 82.20 days. This suggests a slower movement of inventory as DOH increased.
- Northwest Natural Holding Co might be experiencing challenges in managing its inventory efficiently as the number of days required to sell its inventory has been increasing over the quarters.

2. Days of Sales Outstanding (DSO):
- The DSO ratio fluctuated significantly throughout the quarters, indicating inconsistencies in how quickly the company collects payments from its customers.
- DSO improved in Q3 2023 but increased again in Q4 2023. This suggests a potential issue in managing accounts receivable effectively.

3. Number of Days of Payables:
- The company's payment cycle to suppliers, as reflected in the days of payables, has been relatively stable compared to inventory and receivables turnover.
- Northwest Natural Holding Co has been able to maintain a consistent payment period to pay off its suppliers.

In conclusion, Northwest Natural Holding Co may need to focus on streamlining its inventory management and receivables collection processes to enhance overall operational efficiency and cash flow. Monitoring and improving these activity ratios can help the company optimize its working capital management and strengthen its financial performance.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Fixed asset turnover 0.36 0.37 0.37 0.36 0.33 0.31 0.32 0.31 0.30 0.29 0.30 0.30 0.29 0.29 0.30 0.30 0.31 0.30
Total asset turnover 0.25 0.26 0.26 0.25 0.22 0.22 0.23 0.22 0.21 0.21 0.22 0.21 0.21 0.21 0.21 0.19 0.22 0.22

Northwest Natural Holding Co's fixed asset turnover ratio has been relatively consistent, fluctuating between 0.31 to 0.37 over the past eight quarters. This indicates that the company generates approximately $0.36 to $0.37 in revenue for every dollar invested in fixed assets. The stability in this ratio suggests that management is efficiently utilizing its fixed assets to generate sales.

In comparison, the total asset turnover ratio has also shown stability, ranging from 0.22 to 0.26 during the same period. This ratio signifies that the company generates around $0.22 to $0.26 in revenue for every dollar of total assets. While the total asset turnover is lower than the fixed asset turnover, the consistency in this ratio implies that Northwest Natural Holding Co is effectively utilizing its total assets to generate sales.

Overall, the stable trends in both fixed asset turnover and total asset turnover ratios suggest that Northwest Natural Holding Co is efficiently generating revenue from its asset base, reflecting sound operational management and effective asset utilization.