Public Service Enterprise Group Inc (PEG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.17 | 9.03 | 16.32 | 5.09 | 5.81 |
| Receivables turnover | 6.47 | 4.18 | 4.66 | 5.64 | 6.41 |
| Payables turnover | 3.86 | 3.84 | 5.56 | 2.30 | 2.51 |
| Working capital turnover | — | — | — | — | — |
Public Service Enterprise Group Inc.'s inventory turnover has shown a declining trend over the past five years, falling from 4.70 in 2021 to 3.19 in 2023. This suggests that the company's efficiency in managing its inventory has decreased over the period.
On the other hand, the receivables turnover ratio has been fluctuating, with a significant increase from 2022 to 2023. However, the ratio in 2023 remains higher than in 2021 and 2020, indicating that the company is collecting its receivables more efficiently compared to previous years.
In terms of payables turnover, the ratio has fluctuated but generally remained relatively stable over the five-year period, indicating consistent management of payables by the company.
It is worth noting that there is no data available for the working capital turnover, which could provide further insights into how effectively the company is utilizing its working capital to generate sales revenue.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.13 | 40.42 | 22.37 | 71.66 | 62.87 |
| Days of sales outstanding (DSO) | days | 56.39 | 87.34 | 78.28 | 64.69 | 56.98 |
| Number of days of payables | days | 94.58 | 95.14 | 65.65 | 158.83 | 145.44 |
Looking at the activity ratios for Public Service Enterprise Group Inc., we can see patterns of how efficiently the company manages its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand have fluctuated over the past five years, ranging from 77.61 days to 114.54 days.
- This ratio measures how many days, on average, the company holds inventory before selling it.
- A higher number of days of inventory on hand may indicate slower inventory turnover or excess inventory, tying up working capital.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding also fluctuate over the period, with a range of 56.39 days to 87.34 days.
- This ratio represents the average number of days it takes for the company to collect its accounts receivable.
- A higher DSO may signal inefficiencies in collecting receivables, potentially impacting cash flow and working capital management.
3. Number of Days of Payables:
- Public Service Enterprise Group Inc.'s number of days of payables has varied between 115.46 days and 159.09 days.
- This metric indicates the average number of days the company takes to pay its suppliers.
- Longer payment periods may suggest favorable vendor terms or potential liquidity advantages, although excessively long payables could strain supplier relationships.
Overall, monitoring these activity ratios can provide insights into the company's operational efficiency, cash flow management, and working capital requirements over time. Comparing these ratios to industry benchmarks or historical trends can help assess performance and highlight areas for improvement.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 0.27 | 0.28 | 0.25 | 0.28 |
| Total asset turnover | 0.22 | 0.20 | 0.20 | 0.19 | 0.21 |
The fixed asset turnover ratio for Public Service Enterprise Group Inc. has shown a slight improvement over the past five years, increasing from 0.28 in 2019 to 0.30 in 2023. This indicates that the company generates $0.30 in revenue for every $1 invested in fixed assets. The relatively low ratio suggests that the company may not be efficiently utilizing its fixed assets to generate sales.
In comparison, the total asset turnover ratio has also seen a gradual increase, from 0.21 in 2019 to 0.22 in 2023. This ratio signifies that the company generates $0.22 in revenue for every $1 of total assets. The improvement in this ratio indicates that Public Service Enterprise Group Inc. has been more effective in utilizing all of its assets to generate sales over the years.
Overall, while there has been an improvement in both fixed asset turnover and total asset turnover ratios, Public Service Enterprise Group Inc. may still have room for further optimization in utilizing its fixed assets more efficiently to generate revenue.