Nexstar Broadcasting Group Inc (NXST)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 235.04 | — | — | 13.89 |
| Receivables turnover | 4.10 | 4.51 | 4.28 | 4.55 | 3.19 |
| Payables turnover | 16.38 | 18.52 | 13.56 | 13.33 | 14.88 |
| Working capital turnover | 8.88 | 6.75 | 6.99 | 8.60 | 6.97 |
Based on the activity ratios of Nexstar Media Group Inc, we can derive insights into the efficiency of the company in managing its resources and operations.
1. Receivables Turnover:
- Nexstar's receivables turnover has shown a consistent trend of around 4.5 to 5 times over the past five years. This indicates that the company collects its accounts receivable approximately 4 to 5 times a year, reflecting a relatively efficient credit and collection policy.
2. Payables Turnover:
- The payables turnover ratio has varied over the years, ranging from 7.5 to 10 times. A higher turnover indicates that Nexstar is paying its suppliers more frequently, which may be beneficial in managing cash flow and relationships with vendors.
3. Working Capital Turnover:
- The working capital turnover ratio for Nexstar has shown fluctuations over the period, ranging from 7 to almost 10 times. This metric measures how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio suggests that Nexstar is effectively utilizing its current assets to support its revenue generation activities.
In summary, Nexstar Media Group Inc has generally demonstrated efficiency in managing its receivables, payables, and working capital over the years. A consistent receivables turnover, coupled with reasonable payables turnover and working capital turnover ratios, reflects the company's ability to effectively manage its assets and operations to drive revenue growth.
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 | — | 1.55 | — | — | 26.27 |
| Days of sales outstanding (DSO) | days | 89.09 | 80.87 | 85.25 | 80.20 | 114.54 |
| Number of days of payables | days | 22.29 | 19.71 | 26.92 | 27.37 | 24.52 |
The activity ratios for Nexstar Media Group Inc over the past five years show fluctuations in how efficiently the company manages its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH): The data for Days of Inventory on Hand is missing for all years, indicating that the specific information on inventory turnover and management is not available to assess the efficiency of inventory handling.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding decreased from 106.15 days in 2019 to 81.02 days in 2023. This suggests that Nexstar Media Group Inc has improved its efficiency in collecting accounts receivable over the years, which is a positive indicator of effective credit and collection policies.
3. Number of Days of Payables: The number of Days of Payables increased from 35.99 days in 2022 to 39.84 days in 2023. This implies that the company is taking more time to settle its payables, which may indicate a delay in payment to suppliers or possibly better cash flow management.
Overall, the trend in these activity ratios shows a mixed performance in managing working capital components such as inventory, receivables, and payables. It is important for Nexstar Media Group Inc to continue monitoring and improving these ratios to optimize its cash flow and operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 3.54 | 3.86 | 2.89 | 2.57 | 2.18 |
| Total asset turnover | 0.37 | 0.38 | 0.33 | 0.31 | 0.20 |
The fixed asset turnover ratio for Nexstar Media Group Inc has shown a fluctuating trend over the past five years, indicating the company's ability to generate revenue relative to its investment in fixed assets. The ratio peaked in 2022 at 4.13 and has since decreased to 3.89 by the end of 2023. This suggests that the company is slightly less efficient in using its fixed assets to generate revenue compared to the previous year but remains at a relatively high level.
On the other hand, the total asset turnover ratio has remained relatively stable over the same period, hovering around 0.40. This ratio measures the company's overall efficiency in generating revenue from its total assets. The consistent performance of this ratio indicates that Nexstar Media Group Inc has been able to maintain a steady level of revenue generation relative to its total asset base, which is a positive sign for the company's operational efficiency.
Overall, while the fixed asset turnover ratio has shown some variability, the total asset turnover ratio has remained stable, suggesting that Nexstar Media Group Inc has been effective in utilizing its assets to generate revenue over the past five years.