Quanta Services Inc (PWR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 77.49 | 102.16 | 140.85 | 130.25 | 189.05 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 12.99 | 8.48 | 8.02 | 8.28 | 7.73 |
Quanta Services Inc's inventory turnover ratio, calculated as the cost of goods sold divided by average inventory, shows a decreasing trend over the years, from 189.05 in 2020 to 77.49 in 2024. This suggests that the company is taking longer to sell its inventory, which may indicate inefficiencies in inventory management or a decline in sales.
The receivables turnover ratio, which indicates how quickly a company collects its accounts receivable, is not provided for the years 2020 to 2024. Without this data, it is difficult to assess Quanta Services Inc's effectiveness in collecting payments from customers.
Similarly, the payables turnover ratio, which measures how efficiently a company pays its suppliers, is also not available for the years 2020 to 2024. This ratio could have provided insights into Quanta Services Inc's payment practices and liquidity management.
The working capital turnover ratio, calculated as revenue divided by average working capital, shows an increasing trend from 7.73 in 2020 to 12.99 in 2024. This indicates that Quanta Services Inc is generating more revenue relative to its working capital, which could suggest improved operational efficiency or better utilization of resources.
In conclusion, while the inventory turnover ratio has been decreasing, the working capital turnover ratio has been improving for Quanta Services Inc over the years. However, without data on receivables and payables turnover, a comprehensive analysis of the company's overall efficiency in managing its assets and liabilities is limited.
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 | 4.71 | 3.57 | 2.59 | 2.80 | 1.93 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Quanta Services Inc's activity ratios, we can observe the following trends:
1. Days of Inventory on Hand (DOH):
- In 2020, Quanta Services Inc held inventory for approximately 1.93 days before selling it.
- The DOH ratio increased to 2.80 days in 2021, indicating a slight increase in the number of days it takes to convert inventory into sales.
- In 2022 and 2023, the DOH ratios remained relatively consistent at 2.59 days and 3.57 days, respectively.
- By December 31, 2024, the DOH ratio rose significantly to 4.71 days, suggesting that Quanta Services Inc may be carrying more inventory relative to its sales.
2. Days of Sales Outstanding (DSO):
- The data does not provide any information on Quanta Services Inc's Days of Sales Outstanding for the years 2020 to 2024, therefore, we are unable to analyze the efficiency of the company in collecting accounts receivable.
3. Number of Days of Payables:
- Similarly, no data is available on the Number of Days of Payables for the years 2020 to 2024, so we cannot assess how long it takes Quanta Services Inc to pay its suppliers.
In summary, the analysis based on the provided data indicates that Quanta Services Inc's inventory turnover has increased over the years, with a notable rise in the Days of Inventory on Hand by the end of 2024. However, without information on Days of Sales Outstanding and Days of Payables, a comprehensive evaluation of the company's overall efficiency in managing its working capital cannot be made.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.55 | 6.01 | 6.16 |
| Total asset turnover | 1.27 | 1.29 | 1.27 | 1.01 | 1.33 |
Quanta Services Inc's fixed asset turnover ratio has shown a generally positive trend over the years. The ratio decreased slightly from 6.16 in 2020 to 6.01 in 2021 but then significantly improved to 7.55 in 2022. However, there is missing data for 2023 and 2024 which limits our ability to fully assess the trend.
On the other hand, the total asset turnover ratio indicates how efficiently Quanta Services is utilizing its total assets to generate revenue. The ratio decreased from 1.33 in 2020 to 1.01 in 2021, reflecting a potential decrease in the company's ability to generate sales from its total assets. However, there was a recovery in 2022 with the ratio increasing to 1.27, and it stayed consistent at 1.27 in 2024.
Overall, the fixed asset turnover and total asset turnover ratios suggest that Quanta Services Inc may have been effectively utilizing its assets to generate revenue, with fluctuations seen in certain years. The company should continue to monitor these ratios to ensure optimal asset management and operational efficiency.