OGE Energy Corporation (OGE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 11.72 | 9.89 | 20.54 | 65.20 | 52.54 |
| Receivables turnover | 9.47 | 8.92 | 9.78 | 15.89 | 9.09 |
| Payables turnover | 5.69 | 5.67 | 4.98 | 9.66 | 7.63 |
| Working capital turnover | — | — | — | — | — |
The inventory turnover ratio for OGE Energy Corporation has shown fluctuation over the years. It increased from 52.54 in 2020 to 65.20 in 2021, indicating an improvement in inventory management efficiency. However, there was a sharp decline to 20.54 in 2022, followed by further decreases to 9.89 in 2023 and 11.72 in 2024, suggesting potential issues with inventory control and sales.
In terms of receivables turnover, OGE Energy Corporation experienced a positive trend from 9.09 in 2020 to 15.89 in 2021, reflecting an enhanced ability to collect outstanding receivables more quickly. Subsequently, the ratio declined to 9.78 in 2022, 8.92 in 2023, and 9.47 in 2024, indicating a slight deterioration in the company's collection efficiency.
The payables turnover ratio for OGE Energy Corporation reveals a consistent pattern of around 5 to 10 days for settling payables over the years. The ratio increased from 7.63 in 2020 to 9.66 in 2021, suggesting an extension in the payment period to suppliers. Subsequently, it decreased to 4.98 in 2022, 5.67 in 2023, and 5.69 in 2024, indicating a shorter payment period to suppliers.
The working capital turnover ratio for OGE Energy Corporation is not provided for any of the years, making it challenging to assess the efficiency of the company in generating revenue relative to its working capital. This lack of data limits the ability to evaluate the company's overall operational efficiency based on working capital utilization.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.14 | 36.91 | 17.77 | 5.60 | 6.95 |
| Days of sales outstanding (DSO) | days | 38.54 | 40.90 | 37.30 | 22.97 | 40.16 |
| Number of days of payables | days | 64.19 | 64.37 | 73.31 | 37.78 | 47.87 |
Based on the provided data, let's analyze the activity ratios of OGE Energy Corporation:
1. Days of Inventory on Hand (DOH):
- In 2020, OGE Energy Corporation had 6.95 days of inventory on hand, indicating a relatively efficient management of inventory.
- The DOH decreased to 5.60 days in 2021, suggesting an improvement in inventory turnover.
- However, there was a significant increase in DOH in 2022 to 17.77 days, possibly indicating challenges in managing inventory efficiently.
- This trend continued in 2023 and 2024, with the DOH further increasing to 36.91 days and 31.14 days, respectively, which may raise concerns about excess inventory levels.
2. Days of Sales Outstanding (DSO):
- OGE Energy Corporation had 40.16 days of sales outstanding in 2020, indicating the average number of days it takes to collect revenue from sales.
- The DSO improved to 22.97 days in 2021, reflecting quicker collection of receivables.
- However, the DSO increased in 2022 to 37.30 days before rising further in 2023 and 2024 to 40.90 days and 38.54 days, respectively, suggesting a slowdown in the collection of accounts receivable.
3. Number of Days of Payables:
- In 2020, OGE Energy Corporation had 47.87 days of payables, indicating the average time it takes the company to pay its bills.
- The number of days of payables decreased to 37.78 days in 2021, suggesting a quicker payment cycle.
- However, there was a substantial increase in the number of days of payables in 2022 to 73.31 days, which continued to stay relatively high in 2023 and 2024 at 64.37 days and 64.19 days, respectively, potentially indicating a lengthening of the payment period.
Overall, the analysis of these activity ratios for OGE Energy Corporation indicates fluctuations in inventory management efficiency, variations in accounts receivable collection, and changes in the payment cycle over the years, which may impact the company's working capital management and operational performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.25 | 0.24 | 0.32 | 0.37 | 0.23 |
| Total asset turnover | 0.22 | 0.21 | 0.27 | 0.29 | 0.20 |
OGE Energy Corporation's long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio has shown some fluctuations over the years. It increased from 0.23 in 2020 to 0.37 in 2021, suggesting that the company was able to generate more revenue from its fixed assets. However, it decreased to 0.32 in 2022, and further to 0.24 in 2023 before slightly increasing to 0.25 in 2024. This trend indicates a varying level of efficiency in utilizing fixed assets to generate sales.
2. Total Asset Turnover:
- The total asset turnover ratio also demonstrates fluctuations in OGE Energy Corporation's asset utilization efficiency. It rose from 0.20 in 2020 to 0.29 in 2021, indicating an improvement in generating sales from total assets. However, it declined to 0.27 in 2022, further to 0.21 in 2023, before improving slightly to 0.22 in 2024. This trend suggests that the company may have faced challenges in optimizing the utilization of total assets to generate revenue consistently.
In conclusion, the analysis of OGE Energy Corporation's long-term activity ratios highlights the company's varying efficiency in utilizing fixed assets and total assets to generate sales over the years. The fluctuations observed in these ratios indicate that OGE Energy Corporation may need to focus on improving its asset utilization strategies to enhance its overall operational efficiency.