Oceaneering International Inc (OII)

Short-term

Turnover ratios

Oceaneering International, Inc.'s activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate revenue.

1. Inventory Turnover:
- The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period. Oceaneering's inventory turnover has been relatively stable over the past five years, ranging from 9.54 to 11.78. This suggests that the company efficiently manages its inventory levels to meet customer demand.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects cash from its credit sales. Oceaneering's receivables turnover has shown a consistent increasing trend, indicating that the company has been more effective in collecting receivables over the years.

3. Payables Turnover:
- The payables turnover ratio assesses how quickly a company pays its suppliers. Oceaneering's payables turnover has fluctuated over the years but generally remained above 10. This may indicate that the company effectively manages its payable obligations while maintaining good relationships with its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio reflects how effectively a company utilizes its working capital to generate revenue. Oceaneering's working capital turnover has varied significantly over the years, indicating changes in the company's operating efficiency in utilizing its current assets to support sales.

Overall, analyzing these activity ratios provides valuable insights into Oceaneering International, Inc.'s operational efficiency and effectiveness in managing its assets and liabilities to drive sales and profitability.

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Average number of days

The activity ratios of Oceaneering International, Inc. provide insights into the efficiency of the company's operations in managing its inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, inventory is held before being sold.
- Oceaneering International's DOH has been relatively stable over the past five years, ranging from 30.98 days in 2020 to 38.26 days in 2022.
- The trend indicates that the company has been able to effectively manage its inventory levels to meet demand without holding excessive inventory.

2. Days of Sales Outstanding (DSO):
- The DSO measures the average number of days it takes for the company to collect on its sales.
- Oceaneering International's DSO has shown a decreasing trend from 75.09 days in 2019 to 49.88 days in 2023.
- The declining DSO suggests that the company has been improving its collection efforts, resulting in faster cash inflows from sales.

3. Number of Days of Payables:
- This ratio reflects how many days it takes the company to pay its suppliers.
- Oceaneering International's days of payables have fluctuated over the years, ranging from 20.67 days in 2020 to 30.72 days in 2022.
- The company's ability to manage its payables effectively is crucial in maintaining good relationships with suppliers while optimizing cash flow.

Overall, Oceaneering International's activity ratios indicate that the company has been efficiently managing its inventory, collecting receivables, and paying its suppliers in a consistent manner over the years. The trend of stable inventory days, decreasing sales outstanding days, and fluctuating payables days suggest a balanced approach to managing working capital and operational efficiency.

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Long-term

The fixed asset turnover ratio for Oceaneering International, Inc. has shown a consistent increasing trend over the past five years, indicating that the company is generating more revenue from its fixed assets. This implies that the company is utilizing its fixed assets more efficiently to generate sales.

On the other hand, the total asset turnover ratio has also been improving over the years, although not as significantly as the fixed asset turnover ratio. The total asset turnover ratio indicates the company's ability to generate sales from all its assets. The increasing trend suggests that Oceaneering International, Inc. is becoming more efficient in generating sales from its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Oceaneering International, Inc. is managing its assets effectively and improving its operational efficiency over the years. The increasing trends in these ratios bode well for the company's long-term financial performance and efficiency in utilizing its assets to generate revenue.