OGE Energy Corporation (OGE)

Short-term

Turnover ratios

Activity ratios provide insight into how efficiently a company manages its assets and liabilities to generate revenue. Let's analyze the activity ratios of OGE Energy Corporation based on the data provided:

1. Inventory Turnover: This ratio helps in assessing how quickly the company sells its inventory. OGE's inventory turnover has fluctuated over the quarters but generally shows an improving trend, with a significant increase in March 2021 and December 2021. A high inventory turnover ratio indicates efficient management of inventory.

2. Receivables Turnover: This ratio measures how effectively the company collects its outstanding receivables. OGE's receivables turnover has also varied, showing some volatility, with peaks in March 2021 and December 2021. A higher turnover ratio suggests that the company is efficient in collecting payments from customers.

3. Payables Turnover: This ratio indicates how quickly the company pays its suppliers. OGE's payables turnover has fluctuated but generally shows an increasing trend. A higher payables turnover ratio implies that the company is taking longer to pay its suppliers, potentially indicating better financial health.

4. Working Capital Turnover: Unfortunately, the data provided does not contain information for the working capital turnover ratio for OGE Energy Corporation. This ratio typically assesses how effectively the company is utilizing its working capital to generate sales.

Overall, analyzing these activity ratios can provide valuable insights into OGE Energy Corporation's operational efficiency and financial performance, highlighting areas of strength and potential improvement in managing its assets and liabilities.

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Average number of days

Based on the provided data for OGE Energy Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company has shown fluctuations in its inventory management from 2020 to 2024, with days of inventory on hand ranging from a high of 45.43 days in June 2020 to a low of 5.60 days in December 2021.
- Inventory levels seem to have stabilized in recent periods, with a slight increase observed in the most recent data point of 31.14 days in December 2024.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have varied over the years, indicating the time taken by OGE Energy Corporation to collect its accounts receivable.
- The trend in DSO shows some fluctuation, with peaks observed in periods such as September 2023 (57.49 days) and September 2024 (54.75 days), highlighting a potential delay in collecting receivables.
- The DSO ratio decreased to 38.54 days in December 2024, which could indicate an improvement in the efficiency of the company's accounts receivable management.

3. Number of Days of Payables:
- The number of days of payables represents the time it takes for OGE Energy Corporation to pay its suppliers. The data shows fluctuations in this ratio over the years.
- Notably, there was a significant increase in the number of days of payables in December 2020 (266.08 days), indicating potential challenges in managing supplier payments.
- The company has made efforts to improve payables management, with fluctuations observed in recent periods, such as a decrease to 48.11 days in March 2024.

Overall, the analysis of these activity ratios suggests that OGE Energy Corporation has experienced fluctuations in its inventory management, accounts receivable collection, and accounts payable processes over the years. Efforts to stabilize and optimize these activity ratios indicate the company's focus on efficient working capital management and operational effectiveness.

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Long-term

OGE Energy Corporation's long-term activity ratios indicate its efficiency in managing its fixed assets and total assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures how effectively the company is utilizing its fixed assets to generate sales. OGE Energy's fixed asset turnover has remained relatively stable in the range of 0.23 to 0.37 over the past few years. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate revenue. The ratio saw a noticeable increase in the first half of 2021, reaching 0.37, before stabilizing around 0.25 in recent quarters.

2. Total Asset Turnover: This ratio assesses how efficiently the company is using all its assets to generate sales. OGE Energy's total asset turnover has fluctuated between 0.20 and 0.29 over the period under review. A higher total asset turnover ratio suggests more efficient use of assets to generate revenue. The ratio showed an increase in the first half of 2021, reaching 0.29, before declining to around 0.21-0.22 in the most recent quarters.

Overall, OGE Energy Corporation has shown varying levels of efficiency in utilizing its fixed assets and total assets to generate revenue over the past few years. Monitoring these ratios can provide insights into the company's operational efficiency and asset utilization strategies.