PG&E Corp (PCG)

Short-term

Turnover ratios

PG&E Corp's inventory turnover has shown an increasing trend over the years, from 3.16 in 2020 to 18.88 in 2024. This indicates that the company is selling its inventory more efficiently, with inventory being replenished and sold at a faster rate in recent years.

In terms of receivables turnover, PG&E Corp experienced fluctuations over the period, with a peak of 11.93 in 2023 and a low of 6.11 in 2024. This suggests that the company may have varying success in collecting payments from its customers during different years.

The payables turnover ratio also fluctuated, with an increase from 0.10 in 2020 to 0.28 in 2024. This could indicate that PG&E Corp is taking longer to pay its suppliers in 2024 compared to previous years.

Furthermore, the working capital turnover for PG&E Corp was not available for the years provided except for 2024, where it stood at a surprisingly high 27.56. This could signal that the company effectively utilized its working capital to generate revenue in 2024.

Overall, PG&E Corp's activity ratios indicate improvements in inventory management efficiency and working capital utilization over the years, with some fluctuations in receivables and payables management.

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Average number of days

PG&E Corp's activity ratios indicate how efficiently the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The company's inventory turnover has improved significantly from 2020 to 2024, with DOH decreasing from 115.58 days to 19.33 days. This suggests that PG&E is managing its inventory more efficiently and selling inventory faster over the years.
- A lower DOH indicates that the company is better at converting inventory into sales, which can lead to higher liquidity and lower holding costs.

2. Days of Sales Outstanding (DSO):
- PG&E's days of sales outstanding increased from 37.21 days in 2020 to 59.71 days in 2024. This upward trend may indicate that the company is taking longer to collect payments from customers over the years.
- A high DSO could signal potential issues with credit policies or the need for closer monitoring of accounts receivable to ensure timely collection.

3. Number of Days of Payables:
- The number of days of payables has shown a significant decline from 3,628.10 days in 2020 to 1,299.43 days in 2024. This suggests that PG&E has been paying its bills much faster over the years.
- A lower number of days of payables may indicate a more efficient management of trade credit and better relationships with suppliers, but it could also point to potential cash flow challenges if payments are being made too quickly.

Overall, PG&E Corp's improving inventory turnover, increasing days of sales outstanding, and declining number of days of payables suggest positive trends in managing working capital and operational efficiency. However, a closer look at the underlying reasons behind these changes would be necessary to fully assess the company's financial health and performance.

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Long-term

Long-term activity ratios provide insight into how efficiently a company is utilizing its assets to generate revenue. Looking at PG&E Corp's fixed asset turnover, we see a slight improvement from 0.28 in 2020 to 0.30 in 2021, then back to 0.28 in 2022, and another increase to 0.30 in 2023, followed by a decline to 0.28 in 2024. This ratio indicates that PG&E Corp generates $0.28 to $0.30 of revenue for every dollar invested in fixed assets.

In contrast, the total asset turnover for PG&E Corp shows a similar trend with a slight increase from 0.19 in 2020 to 0.20 in 2021, followed by a decrease to 0.18 in 2022, then a slight rebound to 0.19 in 2023, and a decline to 0.18 in 2024. This ratio reveals that PG&E Corp is generating $0.18 to $0.20 of revenue for every dollar invested in total assets.

Overall, while there have been fluctuations in both fixed asset turnover and total asset turnover ratios over the years, the general trend indicates that PG&E Corp may need to focus on improving the efficiency of its asset utilization to enhance revenue generation in the long term.