PBF Energy Inc (PBF)

Short-term

Turnover ratios

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

1. Inventory Turnover: PBF Energy Inc's inventory turnover has generally been improving over the years, from 9.93 in 2020 to 12.90 in 2024. This suggests that the company is selling its inventory more quickly, which is a positive sign as it reduces the risk of obsolescence and holding costs.

2. Receivables Turnover: The receivables turnover ratio for PBF Energy Inc fluctuated over the years but remained relatively stable, ranging from 21.15 to 31.94. This indicates that the company is collecting its receivables efficiently, converting them into cash or sales.

3. Payables Turnover: PBF Energy Inc's payables turnover ratio shows a fluctuating trend as well, ranging from 28.92 to 49.32. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which could be advantageous in negotiating favorable terms and maintaining good relationships with suppliers.

4. Working Capital Turnover: The working capital turnover ratio for PBF Energy Inc has seen significant variations, from 10.82 in 2020 to 36.08 in 2024. A higher turnover ratio indicates that the company is effectively using its working capital to generate revenues.

In conclusion, PBF Energy Inc's activity ratios reflect improvements in managing inventory, receivables, payables, and working capital over the years. These ratios demonstrate the company's efficiency in utilizing its resources to support its operations and generate revenue.

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Average number of days

PBF Energy Inc's activity ratios indicate how efficiently the company is managing its inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a decrease from 36.75 days in 2020 to 28.29 days in 2024.
- The lower DOH implies that PBF Energy Inc is selling its inventory faster, which could be due to effective inventory management or increased sales.

2. Days of Sales Outstanding (DSO):
- DSO increased from 12.23 days in 2020 to 12.84 days in 2024, with some fluctuations in between.
- This suggests that PBF Energy Inc is taking slightly longer to collect its receivables, which could impact its cash flow and working capital management.

3. Number of Days of Payables:
- The company's payment cycle to suppliers ranged from 7.40 to 12.62 days during the period.
- The decreasing trend in days of payables implies that the company is paying its suppliers more quickly, which could be a strategic move to maintain good relationships or negotiate better terms.

Overall, based on these activity ratios, PBF Energy Inc seems to be managing its inventory efficiently, but there may be some room for improvement in its receivables collection process and payment policies to enhance its working capital management.

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Long-term

The fixed asset turnover ratio of PBF Energy Inc has shown significant improvement over the years, increasing from 3.16 in 2020 to 6.54 in 2024. This indicates that the company is generating more revenue from its fixed assets, such as property, plant, and equipment, which is a positive sign of efficiency.

In contrast, the total asset turnover ratio has displayed a fluctuating trend, reaching its peak at 3.43 in 2022 and then declining to 2.61 in 2024. Despite the fluctuations, the general upward trend until 2022 suggests that the company was effectively utilizing its total assets to generate sales. However, the decline in the later years may indicate a decrease in sales relative to the total assets employed.

Overall, the fixed asset turnover ratio portrays an improvement in the efficiency of utilizing fixed assets to generate revenue, while the total asset turnover ratio shows a mixed performance with fluctuations over the period under review.