RPC Inc (RES)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 9.63 | 10.80 | 12.06 | 9.32 | 6.95 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.57 | 2.81 | 3.05 | 2.39 | 1.72 |
1. Inventory Turnover: The inventory turnover ratio for RPC Inc has shown an increasing trend over the years, starting from 6.95 in 2020 to 9.63 in 2024. This indicates that the company is managing its inventory more efficiently, with faster inventory turnover, which is generally considered a positive sign.
2. Receivables Turnover: The data provided does not include receivables turnover ratios for any of the years. This indicates that specific information regarding how efficiently the company is collecting its receivables is not available. An ideal scenario would be to have this information to assess the effectiveness of the company's credit and collection policies.
3. Payables Turnover: Similar to receivables turnover, payables turnover information is not provided for any of the years. Payables turnover helps in understanding how quickly the company pays its suppliers, and the absence of this data limits our ability to assess the company's payment practices.
4. Working Capital Turnover: The working capital turnover ratio for RPC Inc has shown a fluctuating pattern, with a peak of 3.05 in 2022. This ratio measures how effectively the company is utilizing its working capital to generate sales revenue. The downward trend after 2022 might indicate a decrease in sales relative to its working capital, which could be a point of concern.
In conclusion, while RPC Inc has shown improvement in its inventory turnover, the lack of information on receivables and payables turnover limits the overall assessment of the company's efficiency in managing its working capital effectively.
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 | 37.90 | 33.80 | 30.26 | 39.17 | 52.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for RPC Inc, the trend in the Days of Inventory on Hand (DOH) ratio indicates an improvement in inventory management efficiency over the years. The DOH decreased from 52.52 days as of December 31, 2020, to 30.26 days as of December 31, 2022, before slightly increasing to 37.90 days by December 31, 2024. This suggests that the company has been able to streamline its inventory management processes to reduce the number of days it takes to turn over its inventory.
Additionally, the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not provided, which limits a comprehensive analysis of the company's accounts receivable and accounts payable management efficiency. Without these ratios, it is challenging to assess how quickly the company collects its receivables or pays its suppliers.
Overall, based on the available DOH data, RPC Inc appears to have made significant progress in managing its inventory efficiently, which is a positive sign for the company's operational effectiveness and potential profitability. However, a more detailed analysis incorporating additional activity ratios would provide a more comprehensive understanding of the company's overall working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.43 | 2.89 | 2.26 |
| Total asset turnover | 1.02 | 1.26 | 1.42 | 1.00 | 0.76 |
To analyze RPC Inc's long-term activity ratios, we examine the fixed asset turnover and total asset turnover ratios.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets.
- From 2020 to 2024, RPC Inc's fixed asset turnover has been increasing steadily.
- In 2022, the ratio notably improved to 4.43, indicating that the company generated $4.43 in sales for every $1 of fixed assets.
- However, for 2023 and 2024, data is unavailable, so we cannot assess the trend for these years accurately.
2. Total Asset Turnover:
- The total asset turnover ratio indicates how efficiently a company utilizes all its assets to generate sales.
- RPC Inc's total asset turnover increased from 0.76 in 2020 to 1.02 in 2024, showing an improving trend overall.
- A ratio above 1 suggests that the company is generating more in sales than the total value of its assets on the balance sheet.
- Despite a slight decline in 2023, the ratio remained above 1 in 2024.
In conclusion, based on the data provided, RPC Inc's long-term activity ratios show a positive trend in asset utilization, with improvements in both fixed asset turnover and total asset turnover over the period analyzed. The company seems to be effectively generating sales relative to its fixed assets and total assets, indicating efficiency in asset management and revenue generation.