Oceaneering International Inc (OII)

Short-term

Turnover ratios

Oceaneering International Inc's activity ratios provide insights into the efficiency with which the company manages its inventory, receivables, payables, and working capital. Here is a detailed analysis based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio indicates how quickly the company is selling its inventory during a specific period.
- Oceaneering International Inc's inventory turnover has been decreasing over the years, from 11.78 in 2020 to 9.76 in 2024.
- A decreasing trend in the inventory turnover ratio may suggest inefficiencies in managing inventory levels or challenges in selling products, which could tie up capital in unsold inventory.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently the company collects cash from its credit sales.
- Oceaneering International Inc's receivables turnover has been increasing steadily, from 6.17 in 2020 to 8.77 in 2024.
- An increasing trend in the receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which could improve cash flow and reduce the risk of bad debts.

3. Payables Turnover:
- The payables turnover ratio measures how efficiently the company pays its suppliers for credit purchases.
- Oceaneering International Inc's payables turnover has shown a decreasing trend, from 17.66 in 2020 to 11.99 in 2024.
- A decreasing payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could strain supplier relationships or signal potential liquidity issues.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how effectively the company utilizes its working capital to generate sales revenue.
- Oceaneering International Inc's working capital turnover has been increasing, from 2.49 in 2020 to 4.50 in 2024.
- An increasing trend in the working capital turnover ratio implies that the company is generating more revenue per unit of working capital, indicating improved efficiency in utilizing its current assets to support sales growth.

Overall, while Oceaneering International Inc has exhibited mixed trends in its activity ratios, further analysis and comparison with industry benchmarks would be necessary to assess the company's overall operational efficiency and effectiveness in managing its resources.

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Average number of days

Oceaneering International Inc's activity ratios indicate trends in how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The company's DOH increased from 30.98 days in 2020 to 37.39 days in 2024.
- This suggests that Oceaneering International Inc is holding inventory for a longer period, which may indicate challenges in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- The DSO decreased from 59.15 days in 2020 to 41.64 days in 2024.
- This improvement implies that the company is collecting receivables more quickly, which is a positive sign for its cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables increased from 20.67 days in 2020 to 30.45 days in 2024.
- This indicates that Oceaneering International Inc is taking longer to pay its suppliers, which could benefit cash flows in the short term but may strain supplier relationships in the long run.

Overall, it is essential for Oceaneering International Inc to carefully monitor and manage these activity ratios to ensure optimal efficiency in its operations, working capital management, and relationships with stakeholders.

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Long-term

Oceaneering International Inc's long-term activity ratios demonstrate a positive trend in efficiency over the years. The Fixed Asset Turnover ratio, which measures how effectively the company utilizes its fixed assets to generate revenue, shows a steady increase from 3.09 in December 31, 2020, to 6.33 in December 31, 2024. This indicates that Oceaneering International Inc has been more efficient in generating revenue from its fixed assets over time.

Similarly, the Total Asset Turnover ratio, which assesses the company's overall ability to generate revenue from its total assets, also exhibits a consistent improvement from 0.89 in December 31, 2020, to 1.14 in December 31, 2024. This implies that Oceaneering International Inc has been utilizing its total assets more effectively to generate sales throughout the period under review.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Oceaneering International Inc has been successful in enhancing its operational efficiency and productivity in utilizing its assets to drive revenue growth over the long term.