Portland General Electric Co (POR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.78 | 4.44 | 5.27 | 5.03 | 3.81 |
| Receivables turnover | 5.30 | 5.00 | 5.37 | 5.83 | 12.71 |
| Payables turnover | — | 0.92 | 1.68 | 2.37 | 2.22 |
| Working capital turnover | — | — | — | — | — |
Inventory turnover: Portland General Electric Co's inventory turnover has been consistently high over the past five years, ranging from 6.40 to 10.54. This indicates that the company efficiently manages its inventory levels, with an average of approximately 9.54 times per year. A high inventory turnover ratio suggests that the company is able to sell its inventory quickly, reducing the risk of obsolete inventory and potentially lowering holding costs.
Receivables turnover: The receivables turnover ratio for Portland General Electric Co has shown some fluctuation over the years, ranging from 6.65 to 8.39. This ratio measures how efficiently the company collects cash from its customers. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly. Portland General Electric Co's average receivables turnover over the past five years is approximately 7.86 times per year.
Payables turnover: The payables turnover ratio for Portland General Electric Co has varied over the years, with a range of 2.16 to 4.63. This ratio indicates how quickly the company is paying its suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly. Portland General Electric Co's average payables turnover over the past five years is approximately 3.46 times per year.
Working capital turnover: The table does not provide data for the working capital turnover ratio for Portland General Electric Co. This ratio evaluates the efficiency of the company's working capital management in generating sales. Without this data, we are unable to assess how efficiently the company is utilizing its working capital to generate revenue.
Overall, based on the activity ratios provided, Portland General Electric Co appears to efficiently manage its inventory and accounts receivable. However, the fluctuation in payables turnover indicates that the company's payment practices to suppliers have varied over the years. It is important for the company to maintain a balance between efficient inventory management, timely collection of receivables, and sustainable payment practices to suppliers.
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 | 96.59 | 82.17 | 69.27 | 72.60 | 95.74 |
| Days of sales outstanding (DSO) | days | 68.93 | 72.94 | 67.94 | 62.62 | 28.71 |
| Number of days of payables | days | — | 395.27 | 216.69 | 154.27 | 164.55 |
Portland General Electric Co's activity ratios provide insights into how efficiently the company manages its inventory, collects its accounts receivable, and pays its suppliers.
1. Days of Inventory on Hand (DOH): Portland General Electric Co has been able to slightly reduce its days of inventory on hand over the past five years, from 57.07 days in 2019 to 34.66 days in 2023. This indicates that the company has improved its inventory management efficiency by reducing the number of days it takes to sell its inventory, which can lead to lower holding costs and better cash flow management.
2. Days of Sales Outstanding (DSO): The days of sales outstanding have increased over the years, from 43.50 days in 2019 to 51.70 days in 2023. This suggests that Portland General Electric Co is taking longer to collect payments from its customers, which could impact its cash flow and liquidity. The increasing trend in DSO indicates a potential area for improvement in the company's accounts receivable management strategies.
3. Number of Days of Payables: Portland General Electric Co has shown fluctuations in its number of days of payables over the past five years, with a significant increase in 2022 followed by a decrease in 2023. The company's ability to pay its suppliers in a timely manner is important for maintaining good relationships and credit terms. The changes in the number of days of payables should be further analyzed to understand the impact on the company's working capital management and financial stability.
Overall, Portland General Electric Co's activity ratios suggest improvements in inventory management efficiency but also highlight potential challenges in accounts receivable collection and payables management. Further analysis and comparison with industry benchmarks may provide a clearer understanding of the company's operational performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 0.21 | 0.20 | 0.19 | 0.30 |
| Total asset turnover | 0.26 | 0.25 | 0.25 | 0.24 | 0.25 |
The long-term activity ratios of Portland General Electric Co depict the efficiency with which the company utilizes its long-term assets to generate sales and total assets turnover over a period of five years.
The fixed asset turnover ratio has been consistent at around 0.30 over the past five years, indicating that Portland General Electric Co generates approximately $0.30 in revenue for every $1 invested in fixed assets. This suggests stable and efficient utilization of long-term assets to generate sales.
On the other hand, the total asset turnover ratio has also shown consistency around 0.25 over the same period. This ratio signifies that the company generates approximately $0.25 in revenue for every $1 invested in total assets, reflecting steady efficiency in utilizing all assets, including both fixed and current, to generate sales.
Overall, the stable and consistent performance of both fixed asset turnover and total asset turnover ratios indicates that Portland General Electric Co effectively manages its long-term assets to generate revenue, showcasing operational efficiency and effective asset utilization.