PBF Energy Inc (PBF)

Short-term

Turnover ratios

PBF Energy Inc's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory turnover: This shows how many times the company's inventory was sold and replaced during the year. The trend indicates a slight decrease from 2022 to 2023, but overall, the company manages its inventory well, with a higher turnover rate.

2. Receivables turnover: This ratio reveals how effective the company is in collecting outstanding receivables from customers. PBF Energy Inc improved its receivables turnover in 2023 compared to the previous year, indicating efficient collection processes.

3. Payables turnover: This ratio reflects how quickly the company pays its suppliers. PBF Energy Inc shows a consistent pattern of paying suppliers promptly, with a slight decrease in turnover from 2022 to 2023.

4. Working capital turnover: This ratio measures how efficiently the company is using its working capital to generate sales revenue. PBF Energy Inc's working capital turnover improved significantly in 2023, indicating that the company is generating more sales per dollar of working capital employed.

Overall, PBF Energy Inc demonstrates efficient management of its activity ratios, with improvements in some areas indicating effective utilization of resources and operational efficiency.

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Average number of days

PBF Energy Inc's activity ratios provide insight into the efficiency of its inventory management, receivables collection, and payment to suppliers over the past five years.

1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates the number of days it takes for the company to sell its inventory stock.
- PBF Energy Inc's DOH has fluctuated over the years, with a notable decrease in 2022 followed by an increase in 2023.
- The decrease in 2022 suggests improved inventory turnover efficiency, but the subsequent increase in 2023 may indicate challenges in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect payment from its customers after making a sale.
- PBF Energy Inc's DSO has varied slightly over the years, with 2021 showing a significant increase and 2022 demonstrating a slight decline.
- A higher DSO could indicate delays in receivables collection, impacting the company's cash flow, while a lower DSO suggests efficient management of accounts receivable.

3. Number of Days of Payables:
- This ratio represents the average number of days the company takes to pay its suppliers.
- PBF Energy Inc's days of payables have fluctuated but generally remained consistent over the years.
- A longer payment period can indicate improved cash flow management, but it may also strain supplier relationships if payments are delayed excessively.

Overall, PBF Energy Inc's activity ratios reflect varying levels of efficiency in managing inventory, receivables, and payables. The company should continue to monitor and adjust these ratios to optimize working capital management and improve overall operational effectiveness.

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Long-term

The fixed asset turnover ratio for PBF Energy Inc has shown fluctuations over the past five years. In 2022, the ratio was at its highest at 8.74, indicating that the company generated $8.74 in sales for every dollar invested in fixed assets. However, this ratio decreased to 7.70 in 2023, suggesting a slight decline in efficiency in utilizing fixed assets to generate revenue.

In contrast, the total asset turnover ratio has also varied over the same period. The company experienced a significant increase in total asset turnover from 2019 to 2020, where it reached its peak at 3.46. This indicates that PBF Energy Inc was generating $3.46 in sales for every dollar of total assets during that period. However, the ratio declined in subsequent years, reaching 2.66 in 2023.

Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest that PBF Energy Inc has been moderately effective in utilizing its assets to generate revenue. The fluctuations in these ratios may be influenced by factors such as changes in the company's asset base, operational efficiency, and market conditions. Monitoring these ratios over time can provide insights into the company's operational efficiency and asset utilization.