Public Service Enterprise Group Inc (PEG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.17 | 7.04 | 7.13 | 7.92 | 8.99 | 15.11 | 15.51 | 15.05 | 14.68 | 7.64 | 5.04 | 5.08 | 4.96 | 4.87 | 4.93 | 5.18 | 5.71 | 5.94 | 6.18 | 6.43 |
| Receivables turnover | 6.47 | 7.40 | 7.15 | 5.94 | 4.18 | 5.03 | 4.21 | 4.73 | 4.66 | 5.61 | 5.87 | 5.81 | 5.64 | 6.14 | 6.06 | 6.80 | 6.41 | 7.48 | 7.75 | 5.50 |
| Payables turnover | 3.86 | 4.31 | 4.38 | 4.89 | 3.82 | 6.39 | 6.18 | 7.42 | 5.00 | 2.94 | 2.69 | 3.14 | 2.24 | 2.22 | 2.59 | 2.63 | 2.47 | 2.77 | 3.08 | 3.31 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Public Service Enterprise Group Inc.'s activity ratios indicate the efficiency of the company's operations in managing its inventory, receivables, and payables.
1. Inventory turnover: The trend shows fluctuation over the periods, with Q1 2023 having the highest turnover at 5.39 and Q4 2023 having the lowest at 3.19. Overall, the company is turning over its inventory between 3 to 5 times a year, which indicates that it's efficiently managing its inventory levels.
2. Receivables turnover: The company's receivables turnover has been generally increasing over the periods, with Q3 2023 reaching the highest turnover at 7.40. This suggests that Public Service Enterprise Group Inc. is collecting its receivables more frequently, which is a positive sign of effective credit management.
3. Payables turnover: The payables turnover has shown some variability, with Q1 2022 having the highest turnover at 4.02 and Q4 2022 having the lowest at 3.16. The company is making payments to its suppliers between 3 to 4 times a year, indicating a moderate efficiency in managing its payables.
4. Working capital turnover: The data provided does not include information on the working capital turnover for any period. This ratio, if available, would have provided insights into how effectively the company is utilizing its working capital to support its revenue generation.
In conclusion, Public Service Enterprise Group Inc.'s activity ratios reflect a generally efficient management of inventory, receivables, and payables, indicating effective operational control and financial management practices over the analyzed periods.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.14 | 51.85 | 51.16 | 46.09 | 40.61 | 24.15 | 23.54 | 24.25 | 24.87 | 47.77 | 72.46 | 71.89 | 73.64 | 75.00 | 74.02 | 70.47 | 63.90 | 61.42 | 59.07 | 56.75 |
| Days of sales outstanding (DSO) | days | 56.39 | 49.30 | 51.03 | 61.43 | 87.34 | 72.50 | 86.80 | 77.18 | 78.28 | 65.05 | 62.17 | 62.77 | 64.69 | 59.43 | 60.19 | 53.66 | 56.98 | 48.77 | 47.11 | 66.31 |
| Number of days of payables | days | 94.60 | 84.66 | 83.28 | 74.59 | 95.57 | 57.10 | 59.03 | 49.22 | 73.00 | 124.26 | 135.68 | 116.16 | 163.20 | 164.31 | 140.72 | 138.80 | 147.83 | 131.96 | 118.65 | 110.30 |
Activity ratios provide insight into how efficiently a company is managing its assets and processes related to sales, inventory, and accounts payable.
Public Service Enterprise Group Inc.'s Days of Inventory on Hand (DOH) has shown an increasing trend from Q1 2022 to Q4 2023, indicating that the company is holding inventory for a longer period. This may suggest potential inefficiencies in inventory management or slower turnover of goods.
The Days of Sales Outstanding (DSO) have fluctuated over the quarters, with a notable increase in Q4 2022 followed by a downward trend. The lower DSO in Q3 and Q4 2023 suggests that the company is collecting on its sales more quickly, which can be a positive indicator of effective accounts receivable management.
The Number of Days of Payables has also varied over the quarters, showing fluctuations in the time it takes for the company to pay its suppliers. The increase in Q3 and Q4 2023 compared to previous quarters may indicate a delay in payments to suppliers, which could impact relationships or result in missed opportunities for early payment discounts.
Overall, analyzing these activity ratios together can provide a comprehensive view of Public Service Enterprise Group Inc.'s operational efficiency in managing inventory, collecting receivables, and handling payables. It is essential for the company to strike a balance between these components to optimize its working capital and maintain healthy cash flows.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | 0.31 | 0.31 | 0.31 | 0.27 | 0.27 | 0.27 | 0.26 | 0.28 | 0.27 | 0.26 | 0.26 | 0.25 | 0.26 | 0.26 | 0.27 | 0.28 | 0.28 | 0.29 | 0.28 |
| Total asset turnover | 0.22 | 0.24 | 0.23 | 0.23 | 0.20 | 0.20 | 0.19 | 0.19 | 0.20 | 0.18 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.21 | 0.22 | 0.22 | 0.22 |
Public Service Enterprise Group Inc.'s long-term activity ratios indicate how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable around 0.30, showing that the company generates $0.30 in revenue for every dollar invested in fixed assets. This suggests that PSEG is efficiently utilizing its property, plant, and equipment to generate sales.
The total asset turnover ratio has also been consistent, hovering around 0.22 to 0.24, indicating that PSEG generates approximately $0.22 to $0.24 in revenue for every dollar of total assets. This ratio reflects the overall efficiency in utilizing all assets, including current and non-current assets, to generate sales.
Overall, both the fixed asset turnover and total asset turnover ratios have shown consistency over the quarters, with slight fluctuations. This indicates that PSEG has been effectively generating revenue with its asset base, reflecting operational efficiency and sound asset management practices. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of PSEG's long-term activity performance.