Quanta Services Inc (PWR)

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 112.69 112.83 111.46 104.96 157.38 161.87 153.82 144.47 145.94 182.39 176.45 206.20 210.08 197.75 170.52 170.58 154.32 128.79 121.17 99.54
Receivables turnover 4.69 4.47 4.47 4.78 4.62 4.53 4.37 4.22 3.80 3.97 4.51 4.16 4.11 4.14 4.93 4.64 4.39 3.78 4.45 5.50
Payables turnover 9.76 9.29 10.43 12.28 12.48 11.48 11.07 10.15 9.88 11.81 12.47 12.49 13.29 — — — 10.77 — — —
Working capital turnover 8.40 7.61 7.12 8.12 7.96 8.23 8.54 8.60 8.24 3.57 7.24 7.38 7.70 7.59 7.54 7.32 7.69 6.20 6.34 7.99

Quanta Services, Inc. demonstrates efficient management of its inventory, with inventory turnover ratios consistently above 90 and peaking at 140.85 in Q4 2022. This indicates that the company is effectively selling and replenishing its inventory within short time frames.

Regarding receivables turnover, Quanta Services, Inc. maintained a stable performance, ranging from 4.24 to 4.81 throughout the quarters analyzed. This suggests that the company is collecting its receivables at a relatively consistent rate.

The payables turnover ratios for Quanta Services, Inc. show that the company is accelerating its payment of suppliers, with a decreasing trend from 11.17 in Q4 2022 to 8.39 in Q3 2023. This could be a strategic move to manage cash flow or relationships with suppliers.

In terms of working capital turnover, Quanta Services, Inc. demonstrates a fluctuating but overall steady performance. This ratio assesses how effectively the company generates revenue in relation to its working capital. Quanta Services, Inc. maintained values above 7, indicating that it efficiently utilizes its working capital to generate sales.

Overall, Quanta Services, Inc. displays strong activity ratios across inventory turnover, receivables turnover, payables turnover, and working capital turnover, suggesting effective management of its operating cycle and resources in driving business 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 3.24 3.23 3.27 3.48 2.32 2.25 2.37 2.53 2.50 2.00 2.07 1.77 1.74 1.85 2.14 2.14 2.37 2.83 3.01 3.67
Days of sales outstanding (DSO) days 77.78 81.72 81.68 76.39 79.06 80.65 83.53 86.50 96.07 91.86 80.89 87.65 88.83 88.26 73.97 78.72 83.13 96.46 82.06 66.41
Number of days of payables days 37.39 39.30 35.00 29.71 29.24 31.78 32.96 35.95 36.96 30.91 29.27 29.22 27.47 — — — 33.91 — — —

Quanta Services, Inc.'s activity ratios reflect its efficiency in managing inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- Quanta Services has been steadily increasing its days of inventory on hand from Q1 to Q4 2023, indicating that it is taking longer to sell its inventory.
- Having a higher DOH suggests potential issues with inventory management, such as overstocking or slow-moving inventory, which could tie up capital.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have fluctuated over the quarters but have generally remained within the same range.
- It takes Quanta Services about 77 to 86 days to collect its accounts receivable, with a slight improvement in Q1 2023 compared to the previous quarters.

3. Number of Days of Payables:
- Quanta Services has varying days of payables, with the number of days decreasing from Q1 to Q4 2023.
- A decreasing trend in days of payables indicates that the company is paying its suppliers more quickly, which may put pressure on its cash flow but can help maintain good relationships with suppliers.

Overall, a high DOH, DSO, or a low number of days of payables can indicate inefficiencies in managing working capital, which may impact Quanta Services' liquidity and cash flow position. Monitoring these activity ratios can help assess the company's operational efficiency and potential financial risks.

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 9.00 8.45 8.15 7.95 8.37 8.13 7.60 7.17 6.74 7.45 7.22 7.03 3.81 7.92 8.49 8.67 4.58 8.68 8.64 10.77
Total asset turnover 1.27 1.27 1.24 1.24 1.26 1.24 1.18 1.09 1.00 1.12 1.33 1.30 1.33 1.37 1.45 1.46 1.45 1.36 1.46 1.85

Quanta Services, Inc.'s long-term activity ratios indicate the efficiency with which the company is utilizing its fixed and total assets to generate revenue.

The fixed asset turnover ratio has been consistently high, ranging from 7.21 to 8.94 across the past eight quarters. This implies that Quanta Services is effectively utilizing its fixed assets to generate revenue, with a high rate of turnover. The increasing trend in fixed asset turnover indicates improving efficiency in utilizing fixed assets to generate sales over time.

Similarly, the total asset turnover ratio has also remained relatively stable, ranging from 1.09 to 1.29 over the same period. This indicates that Quanta Services is generating sales relative to the size of its total asset base. The company is efficiently generating revenue using its total assets, with a higher turnover ratio indicating better asset utilization.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that Quanta Services is efficiently using its assets to generate revenue. The consistent high ratios demonstrate the company's effective asset management and operational efficiency in generating sales.