PG&E Corp (PCG)

Short-term

Turnover ratios

Inventory Turnover:

PG&E Corp's inventory turnover has shown significant volatility over the periods analyzed. The company experienced a spike in inventory turnover from March 31, 2021, to December 31, 2021, which then dropped into negative territory in subsequent periods. However, there has been a recovery in inventory turnover from March 31, 2023, to December 31, 2024, indicating varying efficiency in managing inventory levels.

Receivables Turnover:

The receivables turnover for PG&E Corp has fluctuated throughout the periods examined. There was a general downward trend from March 31, 2020, to September 30, 2022, indicating a lengthening of the average collection period. However, there was an improvement in receivables turnover from December 31, 2022, to December 31, 2024, suggesting a more efficient collection of receivables during these periods.

Payables Turnover:

PG&E Corp's payables turnover has been inconsistent, with some periods showing negative turnover ratios. This inconsistency may indicate challenges in managing accounts payable effectively. However, there was a slight improvement in payables turnover from March 31, 2023, to December 31, 2024, demonstrating better management of payables during these periods.

Working Capital Turnover:

The working capital turnover for PG&E Corp has been sporadic, with intermittent data provided. The turnover ratio was only available for September 30, 2024, and December 31, 2024, showing a relatively high turnover during these periods. This suggests that the company effectively utilizes its working capital to generate sales revenue, albeit with limited data points for a comprehensive trend analysis.

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Average number of days

Based on the provided data for PG&E Corp's activity ratios, we can analyze the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables to evaluate the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- PG&E Corp's DOH decreased from 10.18 days as of March 31, 2020, to 3.60 days as of December 31, 2020, indicating a significant improvement in managing inventory levels.
- However, the DOH increased sharply to 70.52 days by December 31, 2022, suggesting potential issues with inventory management efficiency.
- The DOH fluctuated over subsequent periods but remained relatively high, indicating the need for closer monitoring and control of inventory levels to optimize working capital and reduce holding costs.

2. Days of Sales Outstanding (DSO):
- The DSO for PG&E Corp fluctuated during the periods analyzed, ranging from 27.87 days as of March 31, 2020, to 59.71 days by December 31, 2024.
- An increasing trend in DSO suggests that the company is taking longer to collect revenue from its customers, impacting cash flow and liquidity.
- The DSO peaked in the later periods, indicating a potential need to tighten credit policies or enhance collection efforts to reduce the time taken to convert sales into cash.

3. Number of Days of Payables:
- PG&E Corp's days of payables varied significantly, with an unusual spike to 3,760.67 days by December 31, 2021, which may be the result of unique circumstances or data anomalies.
- The number of days of payables improved in the subsequent periods, suggesting better management of trade credit and supplier relationships.
- While the number of days of payables decreased over time, it remained relatively high, indicating the need for effective working capital management strategies to balance cash flow and vendor relationships.

In conclusion, PG&E Corp should focus on optimizing inventory levels, enhancing collection practices, and maintaining appropriate payables management to improve operational efficiency and financial performance. Regular monitoring and analysis of these activity ratios can help the company make informed decisions to drive sustainable growth and profitability.

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Long-term

PG&E Corp's Fixed Asset Turnover has remained relatively stable over the analyzed period, ranging between 0.28 to 0.30. This indicates that the company generated approximately $0.28 to $0.30 in revenue for every dollar invested in fixed assets.

On the other hand, the Total Asset Turnover has fluctuated during the period, with values ranging from 0.16 to 0.21. This ratio signifies that PG&E Corp generated between $0.16 to $0.21 in revenue for each dollar of total assets held.

Overall, the Fixed Asset Turnover shows consistent operational efficiency in utilizing fixed assets to generate revenue, while the Total Asset Turnover reveals fluctuations in the company's ability to generate sales from its total asset base.