PPL Corporation (PPL)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 1.54 1.49 1.52 1.57 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
Receivables turnover 8.16 8.28 7.93 6.46 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
Payables turnover 0.66 0.84 0.78 0.83 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
Working capital turnover — 12.40 29.18 12.39 — — 39.37 15.30 — — — 2.26 2.15 1.49 1.15 1.18 0.94 — — —

PPL Corporation's activity ratios provide insights into the efficiency with which the company manages its inventory, receivables, payables, and working capital.

1. Inventory Turnover Ratio: Over the period from March 31, 2020, to December 31, 2024, PPL Corporation's inventory turnover ratio fluctuated between 1.46 and 2.82. The increasing trend seen till March 31, 2023, followed by a decline till December 31, 2024, indicates that the company effectively managed its inventory turnover.

2. Receivables Turnover Ratio: The receivables turnover ratio for PPL Corporation ranged from 6.21 to 9.07 during the same period. The trend shows some fluctuations, but overall, the company maintained a healthy turnover of its receivables, indicating efficient collection practices.

3. Payables Turnover Ratio: PPL Corporation's payables turnover ratio varied between 0.66 and 1.15 from March 31, 2020, to December 31, 2024. The company managed its payables effectively, with some fluctuations over time.

4. Working Capital Turnover Ratio: The working capital turnover ratio provides insights into how well the company utilizes its working capital to generate revenue. PPL Corporation's working capital turnover ratio showed significant fluctuations, with some quarters showing very high ratios, indicating efficient utilization of working capital.

Overall, the analysis of PPL Corporation's activity ratios suggests that the company has been effectively managing its inventory, receivables, payables, and working capital to support its operational activities and financial performance.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 236.99 245.39 240.78 233.07 249.42 220.99 197.95 156.84 158.06 158.96 135.09 129.37 155.67 152.00 135.85 145.11 172.23 199.87 184.72 169.77
Days of sales outstanding (DSO) days 44.73 44.07 46.05 56.52 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
Number of days of payables days 554.69 436.67 470.04 441.22 545.28 533.46 407.18 409.45 428.51 364.62 400.81 316.95 328.26 317.50 350.13 368.35 424.88 491.98 445.99 441.93

Based on the provided data for PPL Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The trend in the DOH ratio shows fluctuations from 169.77 days to 249.42 days over the period under review.
- The firm's inventory holding period experienced a peak of 249.42 days on December 31, 2023, and decreased to 236.99 days by December 31, 2024.
- Inventory management may need attention as the DOH ratio remained relatively high throughout the period.

2. Days of Sales Outstanding (DSO):
- The DSO ratio fluctuated between 40.46 days and 58.74 days during the period.
- The DSO ratio improved from 58.74 days on December 31, 2020, to 44.73 days on December 31, 2024.
- The trend suggests that the company was able to collect its receivables more efficiently as the DSO ratio decreased over time.

3. Number of Days of Payables:
- The Days of Payables ratio ranged from 317.50 days to 554.69 days in the analyzed period.
- The company's payment period to suppliers peaked at 554.69 days on December 31, 2024, indicating a lengthening payment cycle over time.
- PPL Corporation might be strategically managing its payables to optimize cash flows or manage liquidity, as evidenced by the extended payment terms over the period.

Overall, analyzing these activity ratios provides insights into PPL Corporation's inventory management, receivables collection efficiency, and payables management practices, which are crucial aspects for assessing the company's operational performance and financial health over time.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 0.26 0.25 0.26 0.26 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
Total asset turnover 0.21 0.20 0.21 0.21 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

The fixed asset turnover ratio for PPL Corporation has been fluctuating over the years, gradually increasing from 0.19 in March 2020 to 0.26 in December 2024, indicating that the company has been generating more revenue from its fixed assets. This suggests that PPL Corporation has been using its fixed assets more efficiently to generate sales.

On the other hand, the total asset turnover ratio has shown a declining trend from 0.15 in March 2020 to 0.21 in December 2024. This indicates that the company's total assets have been less effective in generating revenue over time. It is important to note that the total asset turnover ratio considers all assets, not just fixed assets.

Overall, the increasing trend in the fixed asset turnover ratio suggests that PPL Corporation has been improving its efficiency in utilizing its fixed assets, while the declining trend in the total asset turnover ratio signals a potential decrease in the overall efficiency of the company's assets in generating sales.