RPC Inc (RES)

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 12.45 9.43 10.52 10.99 9.82 12.88 11.69 11.02 10.88 7.67 6.70 6.00 9.04 11.86 12.63 14.40 12.66 12.86 12.09 11.87
Receivables turnover 3.72 4.40 4.13 4.25 2.84 2.71 2.89 2.85 2.18 2.60 2.79 2.03 2.20 3.70 5.54 4.00 4.83 6.71 7.35 7.75
Payables turnover 16.24 11.73 12.46 9.42 8.27 8.20 10.31 12.08 11.55 10.06 10.17 7.93 18.24 21.48 55.94 19.84 24.05 16.62 11.68 13.45
Working capital turnover 2.83 3.14 3.02 3.21 3.07 3.06 2.84 2.59 2.42 2.23 1.85 1.58 1.74 2.06 2.47 3.13 4.65 6.02 7.25 7.83

Inventory turnover for RPC, Inc. has been gradually decreasing over the past year, indicating a slower rate of inventory sold and potentially excess inventory levels. This could lead to higher carrying costs and the risk of obsolete inventory.

Receivables turnover has shown a consistent improvement over the quarters, indicating that the company is collecting its accounts receivable more efficiently. This could improve cash flow and reduce the risk of bad debt.

Payables turnover has been fluctuating but generally increasing, suggesting that the company is taking longer to pay its suppliers. While this may indicate improved liquidity, it could also strain relationships with suppliers if payment terms are extended too far.

Working capital turnover has remained relatively stable over the quarters, indicating that the company is efficiently utilizing its working capital to generate revenue. However, a declining trend in this ratio may indicate inefficiencies in managing working capital resources.

Overall, RPC, Inc. should focus on optimizing its inventory levels, maintaining efficient accounts receivable collection, and carefully managing its payables to ensure smooth operations and healthy financial performance.

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 29.31 38.71 34.69 33.22 37.18 28.34 31.22 33.14 33.54 47.60 54.45 60.82 40.39 30.77 28.90 25.34 28.83 28.38 30.18 30.74
Days of sales outstanding (DSO) days 98.14 82.89 88.39 85.97 128.53 134.59 126.42 127.94 167.35 140.17 130.84 179.85 165.81 98.62 65.85 91.22 75.52 54.36 49.66 47.08
Number of days of payables days 22.48 31.11 29.30 38.73 44.11 44.50 35.41 30.23 31.60 36.27 35.89 46.02 20.01 17.00 6.52 18.40 15.18 21.96 31.24 27.14

The activity ratios of RPC, Inc. provide insight into the efficiency of the company's operations and management of working capital.

Days of Inventory on Hand (DOH) has shown a decreasing trend from Q1 2023 to Q4 2023, indicating that RPC has been managing its inventory more effectively, reducing the number of days it takes to sell its inventory. This suggests improved inventory management and potentially faster inventory turnover.

Days of Sales Outstanding (DSO) have been fluctuating over the quarters but generally trending downwards from Q4 2022 to Q4 2023. A decreasing DSO indicates that RPC has been collecting its accounts receivable more efficiently, reducing the average number of days it takes to collect payment from customers. This can improve cash flow and reduce the risk of bad debts.

Number of Days of Payables has been relatively stable over the quarters, with a slight decrease from Q3 2022 to Q1 2023. A consistent level of days of payables suggests that RPC has been maintaining good relationships with its suppliers and managing its trade credit effectively.

Overall, the trends in these activity ratios indicate that RPC, Inc. has been effectively managing its inventories, accounts receivable, and accounts payable, which is crucial for maintaining a healthy cash flow and optimizing working capital efficiency.

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 3.74 3.93 4.75 4.80 4.84 4.47 4.32 3.81 3.44 2.98 2.57 2.13 2.30 2.52 3.11 3.83 3.02 3.93 4.64 6.04
Total asset turnover 1.27 1.38 1.50 1.52 1.43 1.32 1.21 1.10 1.01 0.91 0.82 0.68 0.77 0.87 1.11 1.30 1.48 1.87 2.18 2.64

RPC, Inc.'s long-term activity ratios provide insight into the company's efficiency in managing its fixed assets and total assets to generate sales.

1. Fixed Asset Turnover:
- RPC, Inc.'s fixed asset turnover has shown a declining trend from Q1 2022 to Q4 2023, with the most recent ratio of 3.72 indicating that the company generated $3.72 in sales for every dollar invested in fixed assets during the fourth quarter of 2023.
- Although there has been some fluctuation, the company's fixed asset turnover generally remained at a healthy level above 3.0, suggesting efficient utilization of fixed assets to generate revenue.
- The decreasing trend in fixed asset turnover could indicate either a decrease in sales relative to fixed assets or an increase in fixed assets not being efficiently utilized to generate sales.

2. Total Asset Turnover:
- RPC, Inc.'s total asset turnover has also shown variability but has generally increased from Q1 2022 to Q4 2023, with the latest ratio of 1.26 indicating that the company generated $1.26 in sales for every dollar of total assets during the fourth quarter of 2023.
- The upward trend in total asset turnover suggests an improvement in the company's ability to generate sales relative to its total asset base over the period analyzed.
- A higher total asset turnover ratio indicates more efficient utilization of all assets, including fixed and current assets, to generate sales.

Overall, while RPC, Inc.'s fixed asset turnover indicates some variability in the efficiency of utilizing fixed assets, its total asset turnover shows an improving trend in the overall efficiency of generating sales from all assets. Further analysis of operational and strategic factors impacting these ratios may provide a deeper understanding of the company's long-term asset management effectiveness.