RPC Inc (RES)

Short-term

Turnover ratios

Based on the data provided, we can analyze the activity ratios of RPC Inc as follows:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. RPC Inc's inventory turnover has been gradually increasing from 10.45 in March 2020 to 10.54 in December 2024. This indicates that the company is selling its inventory more quickly over the years, which is a positive sign of effective inventory management.

2. Receivables Turnover: Unfortunately, the data does not provide information on RPC Inc's receivables turnover, which measures how efficiently the company collects its outstanding receivables from customers. Without this data, we are unable to assess RPC Inc's effectiveness in collecting payments from customers.

3. Payables Turnover: Similarly, the data does not provide information on RPC Inc's payables turnover, which measures how quickly the company pays its suppliers. Without this data, we cannot evaluate RPC Inc's efficiency in managing its payables.

4. Working Capital Turnover: The working capital turnover ratio shows how efficiently a company utilizes its working capital to generate sales. RPC Inc's working capital turnover has generally been increasing from 3.13 in March 2020 to 2.57 in December 2024, with some fluctuations along the way. This indicates that the company is effectively utilizing its working capital to generate sales revenue.

In summary, RPC Inc has shown improvement in its inventory turnover and working capital turnover ratios over the years, reflecting improved efficiency in managing its inventory and working capital. However, without data on receivables turnover and payables turnover, a complete assessment of the company's activity ratios is not possible.

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Average number of days

Based on the provided data, let's analyze the activity ratios of RPC Inc:

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a gradual decrease from 34.93 days as of March 31, 2020, to 34.64 days as of December 31, 2024. This indicates that the company has been able to reduce the number of days it takes to sell its inventory over the years. A lower DOH is generally favorable as it implies efficient inventory management.

2. Days of Sales Outstanding (DSO):
- Unfortunately, specific data for DSO is not provided in the dataset. DSO is a measure of how efficiently a company collects its accounts receivable, and a lower DSO is preferable as it indicates that the company is collecting payments from customers quickly.

3. Number of Days of Payables:
- Similarly, data for the number of days of payables is not available in the dataset. This ratio measures how long a company takes to pay its suppliers. A longer period indicates that the company is taking longer to pay its bills, which could be beneficial in managing cash flow but may strain supplier relationships if excessive.

In conclusion, based on the available data, RPC Inc has shown positive progress in managing its inventory levels efficiently with a decreasing trend in Days of Inventory on Hand. However, without information on Days of Sales Outstanding and Number of Days of Payables, a comprehensive assessment of the company's overall activity ratios cannot be made.

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Long-term

RPC Inc's fixed asset turnover ratio has generally shown a decreasing trend over the years, starting at 3.83 on March 31, 2020, reaching its lowest point at 2.09 on March 31, 2021, and then gradually increasing to 4.78 on March 31, 2023. This ratio measures the efficiency of the company in generating sales from its fixed assets, and the increasing trend from 2021 to 2023 indicates improved efficiency in utilizing its fixed assets.

On the other hand, RPC Inc's total asset turnover ratio has also varied over the years, with a decreasing trend observed until December 31, 2023, where it was at 1.23. This ratio started at 1.30 on March 31, 2020, had a slight increase in mid-2021, and then decreased again. The total asset turnover ratio measures the company's ability to generate sales from its total assets. The decreasing trend until 2023 may indicate potential inefficiencies in utilizing the company's total assets to generate sales.

Overall, evaluating both the fixed asset turnover and total asset turnover ratios together can provide a more comprehensive understanding of RPC Inc's efficiency in utilizing its assets to generate revenue over the years. Further analysis and comparison with industry benchmarks can help in assessing the company's performance in this aspect.