Public Service Enterprise Group Inc (PEG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.15 | 6.17 | 9.03 | 16.32 | 5.09 |
| Receivables turnover | 4.47 | 6.47 | 4.18 | 4.66 | 5.64 |
| Payables turnover | 4.04 | 3.86 | 3.84 | 5.56 | 2.30 |
| Working capital turnover | — | — | — | — | — |
The activity ratios of Public Service Enterprise Group Inc provide insights into the efficiency of the company's operations.
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. The trend for Public Service Enterprise Group Inc shows an increase in 2021, a peak in 2021, and a subsequent decline in 2022 and beyond. Overall, the company has been efficient in managing its inventory turnover, with a relatively high turnover rate, indicating effective inventory management.
2. Receivables Turnover: The receivables turnover ratio indicates how efficiently a company is collecting payments from its customers. Public Service Enterprise Group Inc's receivables turnover ratio fluctuated over the years, with a peak in 2023. The company maintained a moderate level of efficiency in collecting receivables from customers, although there were fluctuations in performance.
3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. Public Service Enterprise Group Inc showed an increase in payables turnover from 2020 to 2021, suggesting more efficient management of payables. The ratios remained relatively stable in subsequent years, indicating consistent payment practices.
4. Working Capital Turnover: The working capital turnover ratio reflects how effectively a company utilizes its working capital to generate sales. In this case, there is no data provided for Public Service Enterprise Group Inc for working capital turnover across the years. This could imply that the company's working capital turnover may not be significantly emphasized or may not be readily available for analysis.
In conclusion, Public Service Enterprise Group Inc has demonstrated reasonable efficiency in managing its inventory, receivables, and payables turnover ratios, which are essential indicators of operational effectiveness and cash flow management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.92 | 59.13 | 40.42 | 22.37 | 71.66 |
| Days of sales outstanding (DSO) | days | 81.73 | 56.39 | 87.34 | 78.28 | 64.69 |
| Number of days of payables | days | 90.32 | 94.58 | 95.14 | 65.65 | 158.83 |
Public Service Enterprise Group Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the past five years, ranging from a low of 22.37 days in December 2021 to a high of 71.66 days in December 2020. The trend indicates that the company has been managing its inventory more efficiently in recent years compared to earlier periods.
In terms of Days of Sales Outstanding (DSO), the company's performance has been somewhat inconsistent, with the number of days fluctuating between 56.39 days in December 2023 and 87.34 days in December 2022. This suggests that there may be variability in the company's ability to collect its accounts receivable efficiently.
Regarding the Number of Days of Payables, Public Service Enterprise Group Inc has shown a significant decrease in the number of days from 158.83 days in December 2020 to 65.65 days in December 2021, indicating a faster payment cycle. However, the number of days of payables has increased slightly in more recent years, reaching 90.32 days in December 2024. This implies that the company may be taking longer to pay its suppliers.
Overall, while there have been improvements in inventory management and payment cycles, there may be room for Public Service Enterprise Group Inc to further streamline its accounts receivable process to enhance its overall efficiency and liquidity management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.27 | 0.28 | 0.25 |
| Total asset turnover | 0.19 | 0.22 | 0.20 | 0.20 | 0.19 |
The fixed asset turnover ratio for Public Service Enterprise Group Inc has shown a slight increase from 0.25 in 2020 to 0.28 in 2021, before slightly decreasing to 0.27 in 2022. Notably, the data for 2023 and 2024 is not available for this ratio.
In terms of total asset turnover, the company's performance remained relatively stable over the years, with the ratio fluctuating between 0.19 and 0.22. There was a peak in 2023 with a total asset turnover of 0.22, while in 2024, the ratio decreased back to 0.19.
Overall, the fixed asset turnover indicates how efficiently Public Service Enterprise Group Inc is utilizing its fixed assets to generate sales, while the total asset turnover reflects the company's ability to generate sales in relation to its total assets. The trends observed in these ratios suggest that the company may have experienced some variations in asset utilization and efficiency during the period under consideration.