One Gas Inc (OGS)
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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.30 | 6.82 | 10.02 | 15.23 | 5.49 | 1.46 | 2.20 | 4.32 | 0.08 | 0.92 | 1.57 | 2.31 | 0.12 | 3.11 | 4.01 | 6.45 | 4.30 | 6.57 | 10.47 | 20.17 |
| Receivables turnover | 6.82 | 24.77 | 18.85 | 9.02 | 7.93 | 18.75 | 14.54 | 6.90 | 8.98 | 23.59 | 17.20 | 9.73 | 8.95 | 25.72 | 19.80 | 10.86 | 9.46 | 8.64 | 6.59 | 3.98 |
| Payables turnover | 4.24 | 8.27 | 9.41 | 7.63 | 4.10 | 2.63 | 2.34 | 1.63 | 0.05 | 1.21 | 0.85 | 0.45 | 0.08 | 5.02 | 4.62 | 3.77 | 3.72 | 12.44 | 13.67 | 8.68 |
| Working capital turnover | — | — | — | — | 155.70 | — | — | — | 2.47 | 85.25 | 11.79 | 9.73 | — | — | — | — | — | — | — | — |
ONE Gas Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities.
1. Inventory turnover: This ratio measures how many times inventory is sold and replaced during a period. The trend shows an improving efficiency in managing inventory, with a gradual increase from 4.29 in Q4 2022 to 8.63 in Q1 2023. This indicates that ONE Gas Inc is selling its inventory more quickly over time.
2. Receivables turnover: This ratio indicates how many times receivables are collected within a period. There is significant variability in this ratio, with a high of 14.56 in Q3 2023 and a low of 4.36 in Q1 2022. The company's ability to collect receivables improved in recent quarters before a slight decrease in Q4 2023.
3. Payables turnover: This ratio measures how many times the company pays its suppliers within a period. ONE Gas Inc has been efficient in paying its suppliers, with a consistent range of values between 4.05 and 9.26. An increasing trend is observed from Q1 2022 to Q3 2023, indicating better management of payables.
4. Working capital turnover: The data is not available for Q1 2023 till Q4 2023, but in Q4 2022, the working capital turnover ratio was notably high at 91.45. This ratio signifies how effectively the company utilizes its working capital to generate revenue. A high value indicates efficient utilization of working capital.
In summary, ONE Gas Inc has shown improvements in managing its inventory efficiently, collecting receivables, and paying suppliers promptly. The working capital turnover in the available period indicates effective use of working capital. Monitoring these activity ratios can help assess the company's operational efficiency and financial performance over time.
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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.98 | 53.49 | 36.43 | 23.96 | 66.44 | 249.41 | 165.93 | 84.48 | 4,786.19 | 395.20 | 232.49 | 157.93 | 2,956.06 | 117.29 | 91.00 | 56.62 | 84.84 | 55.56 | 34.86 | 18.09 |
| Days of sales outstanding (DSO) | days | 53.53 | 14.74 | 19.36 | 40.48 | 46.06 | 19.46 | 25.10 | 52.87 | 40.64 | 15.48 | 21.22 | 37.51 | 40.76 | 14.19 | 18.44 | 33.63 | 38.59 | 42.26 | 55.38 | 91.78 |
| Number of days of payables | days | 86.17 | 44.13 | 38.79 | 47.85 | 88.97 | 138.81 | 155.99 | 224.47 | 6,888.48 | 302.23 | 429.34 | 812.30 | 4,792.61 | 72.69 | 79.05 | 96.77 | 98.04 | 29.35 | 26.70 | 42.05 |
Days of inventory on hand (DOH) measures how long it takes for a company to sell its inventory. ONE Gas Inc's DOH has fluctuated over the past eight quarters, with a high of 118.66 days in Q3 2022 and a low of 42.28 days in Q1 2023. The company had a significant decrease in DOH from Q3 2022 to Q4 2022, indicating better inventory management. However, the DOH increased again in Q3 2023, suggesting potential issues with inventory turnover.
Days of sales outstanding (DSO) reflects how long it takes for a company to collect its accounts receivable. ONE Gas Inc's DSO has also been variable, reaching a high of 83.80 days in Q1 2022 and a low of 25.07 days in Q3 2023. The company improved its DSO significantly from Q1 2022 to Q3 2023, indicating more efficient collections and possibly stricter credit policies. However, the increase in DSO from Q3 2023 to Q4 2023 suggests a potential slowdown in collections.
Number of days of payables measures how long a company takes to pay its suppliers. ONE Gas Inc's payables days have fluctuated, with a high of 90.18 days in Q4 2022 and a low of 39.42 days in Q2 2023. The company showed an improvement in payables days from Q4 2022 to Q2 2023, indicating more efficient management of vendor payments. However, the increase in payables days from Q2 2023 to Q3 2023 might suggest potential cash flow constraints or changing payment terms with suppliers.
Overall, ONE Gas Inc's activity ratios show variability over the quarters, highlighting the importance of continuous monitoring and management of inventory, accounts receivable, and accounts payable to maintain healthy liquidity and operational efficiency.
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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | 0.73 | 0.75 | 0.78 | 0.78 | 0.66 | 0.66 | 0.65 | 0.59 | 0.55 | 0.39 | 0.55 | 0.54 | 0.57 | 0.58 | 0.55 | 0.51 | 0.25 | 0.25 | 0.31 |
| Total asset turnover | 0.31 | 0.59 | 0.60 | 0.60 | 0.56 | 0.49 | 0.42 | 0.40 | 0.37 | 0.34 | 0.34 | 0.31 | 0.44 | 0.48 | 0.48 | 0.45 | 0.41 | 0.20 | 0.21 | 0.24 |
The fixed asset turnover ratio for ONE Gas Inc has been relatively stable over the past eight quarters, ranging from 0.39 to 0.46. This ratio indicates that the company generates between $0.39 and $0.46 in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has shown a gradual improvement over the same period, increasing from 0.25 in Q1 2022 to 0.31 in Q4 2023. This ratio measures the company's ability to generate sales from all its assets. The upward trend indicates that ONE Gas Inc has been more effective in utilizing all its assets to generate revenue.
In comparison, the fixed asset turnover ratio is higher than the total asset turnover ratio, indicating that a significant portion of the company's revenue is generated from its fixed assets rather than its total assets. This may suggest that the company's investment in fixed assets is fundamental to its operations and revenue generation.
Overall, both ratios reflect positively on ONE Gas Inc's operational efficiency and asset utilization, with the company effectively leveraging its fixed assets and improving its overall asset turnover over time.