PPL Corporation (PPL)

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 1.46 1.65 1.84 2.33 2.31 2.30 2.70 2.82 2.34 2.40 2.69 2.52 2.12 1.83 1.98 2.15 2.17 2.72 2.84 4.89
Receivables turnover 6.81 8.03 8.26 7.40 7.55 7.66 7.47 9.07 9.02 8.71 8.45 7.78 6.21 7.30 8.55 8.52 9.81 10.52 9.97 9.07
Payables turnover 0.67 0.68 0.90 0.89 0.85 1.00 0.91 1.15 1.11 1.15 1.04 0.99 0.86 0.74 0.82 0.83 0.75 0.95 0.98 1.63
Working capital turnover — — 39.37 15.30 — — — 2.26 2.15 1.49 1.15 1.18 0.94 — — — — — — —

PPL Corp's inventory turnover has remained relatively stable over the past eight quarters, ranging from 5.10 to 6.88. This indicates that the company efficiently manages its inventory by quickly converting it into sales.

In terms of receivables turnover, PPL Corp has shown variability, with values ranging between 4.94 and 6.40. This suggests that the company is generally effective in collecting payments from customers, although there have been some fluctuations in performance.

The payables turnover ratio for PPL Corp has also shown some variability, ranging from 2.18 to 3.04. A higher payables turnover ratio indicates that the company is efficiently managing its payables by paying suppliers promptly.

The working capital turnover ratio, which was only available for Q2 and Q1 of 2023, shows a significant increase from 15.30 to 39.37. This indicates that for every dollar of working capital invested, the company is generating a higher level of sales, reflecting improved efficiency in resource utilization.

Overall, while PPL Corp's activity ratios reveal some fluctuations, they generally suggest that the company effectively manages its inventory, receivables, payables, and working capital to support its operations.

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 249.42 220.99 197.95 156.84 158.06 158.96 135.09 129.37 155.67 152.00 135.85 145.11 172.23 199.87 184.72 169.77 168.54 134.43 128.40 74.63
Days of sales outstanding (DSO) days 53.62 45.48 44.20 49.35 48.32 47.62 48.87 40.25 40.46 41.91 43.22 46.91 58.74 50.02 42.70 42.85 37.21 34.69 36.63 40.24
Number of days of payables days 545.28 533.46 407.18 409.45 428.51 364.62 400.81 316.95 328.26 317.50 350.13 368.35 424.88 491.98 445.99 441.93 485.31 385.51 372.63 224.18

Days of inventory on hand (DOH) measures how efficiently PPL Corp manages its inventory. The trend over the past year shows fluctuations, with DOH increasing from Q1 to Q4 in 2022, then decreasing in Q1 2023 before gradually increasing in subsequent quarters. PPL Corp had an average of around 62-71 days of inventory on hand during the past year.

Days of sales outstanding (DSO) reflects the average number of days PPL Corp takes to collect revenue after a sale is made. The trend indicates variations, with DSO decreasing from Q2 to Q3 2022, then increasing in Q4 2022 before declining again in Q3 2023 and rising in subsequent quarters. On average, PPL Corp had around 57-73 days of sales outstanding over the past year.

The number of days of payables shows how long it takes PPL Corp to pay its suppliers. The trend reveals fluctuations, with the number of days of payables increasing from Q3 to Q4 2022, then decreasing in Q1 2023 before rising again in subsequent quarters. On average, PPL Corp took around 120-192 days to pay its payables over the past year.

Overall, PPL Corp's activity ratios show some variability over the past year, indicating potential fluctuations in its inventory management, sales collection efficiency, and payment practices. It is essential for PPL Corp to monitor and manage these ratios effectively to optimize its working capital and operational efficiency.

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 0.26 0.28 0.28 0.28 0.26 0.24 0.22 0.24 0.23 0.22 0.22 0.22 0.22 0.16 0.18 0.19 0.21 0.22 0.22 0.22
Total asset turnover 0.21 0.22 0.23 0.22 0.21 0.19 0.17 0.18 0.17 0.17 0.15 0.12 0.11 0.13 0.14 0.15 0.17 0.17 0.17 0.17

PPL Corp's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insight into the efficiency of the company's asset utilization over time.

Fixed asset turnover ratio measures how well a company is utilizing its fixed assets to generate sales. A higher ratio indicates more efficient use of fixed assets. PPL Corp's fixed asset turnover has shown a consistent improvement from 0.26 in Q4 2022 to 0.28 in Q4 2023. This suggests that the company has been able to generate more sales relative to its investment in fixed assets, reflecting an increase in efficiency in utilizing these assets.

Total asset turnover ratio measures the company's ability to generate sales from all its assets. A higher total asset turnover ratio indicates that the company is generating more sales for each dollar of assets it owns. PPL Corp's total asset turnover has also exhibited a positive trend, increasing from 0.21 in Q4 2022 to 0.22 in Q4 2023. This indicates that the company has been able to generate more revenue from its total assets, signaling improved efficiency in asset utilization.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios suggest that PPL Corp has been effectively utilizing its assets to drive sales and generate revenue over the analyzed period.