Republic Services Inc (RSG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 95.41 | 91.90 | 84.93 | 93.32 | 103.22 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Based on the provided data for Republic Services Inc, we can analyze the activity ratios as follows:
1. Inventory Turnover:
- The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period. In this case, Republic Services Inc's inventory turnover has shown a slight decrease over the years, from 103.22 in 2020 to 95.41 in 2024. Generally, a higher inventory turnover ratio signifies efficient inventory management, as the company is selling goods quickly.
2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable. However, the data provided indicates that the receivables turnover ratio was not available for analysis for the years 2020 to 2024. Without this information, it is challenging to assess the effectiveness of Republic Services Inc's accounts receivable collection process.
3. Payables Turnover:
- The payables turnover ratio reveals how quickly a company is paying its suppliers. Unfortunately, the data does not provide information on the payables turnover ratio for Republic Services Inc for the years 2020 to 2024. This ratio's analysis could have offered insights into the company's payment practices and relationships with its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio demonstrates how effectively a company utilizes its working capital to generate revenue. However, similar to the other activity ratios, the data does not provide working capital turnover information for Republic Services Inc across the years 2020 to 2024. This ratio would have been beneficial in understanding how efficiently the company is utilizing its working capital resources.
In conclusion, while the inventory turnover ratio showed a decreasing trend, the lack of data for receivables turnover, payables turnover, and working capital turnover ratios limits a comprehensive analysis of Republic Services Inc's overall efficiency in managing its assets and generating revenue. To gain a complete understanding of the company's activity ratios, additional information would be needed.
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 | 3.83 | 3.97 | 4.30 | 3.91 | 3.54 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The Days of Inventory on Hand (DOH) represents the average number of days it takes for Republic Services Inc to sell its inventory. The trend shows an increase in DOH from 3.54 days as of December 31, 2020, to 3.83 days as of December 31, 2024, indicating a slight increase in the number of days it takes for the company to sell its inventory.
The Days of Sales Outstanding (DSO) is not provided in the data, which means we lack information on the average number of days it takes for Republic Services Inc to collect its accounts receivable from customers. Without this data, we cannot assess the efficiency of the company in collecting its receivables.
Similarly, the Number of Days of Payables information is missing, preventing us from analyzing how long Republic Services Inc takes to pay its suppliers or trade payables.
Overall, without complete information on DSO and payables, we cannot provide a comprehensive analysis of Republic Services Inc's activity ratios related to accounts receivable and accounts payable turnover.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.26 | 1.22 | 1.16 |
| Total asset turnover | 0.49 | 0.48 | 0.47 | 0.45 | 0.43 |
To analyze Republic Services Inc's long-term activity ratios, we will focus on two key ratios: fixed asset turnover and total asset turnover.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates sales using its fixed assets. It is calculated by dividing net sales by average fixed assets.
- For Republic Services Inc, the fixed asset turnover has shown a consistent improvement over the years, increasing from 1.16 in 2020 to 1.26 in 2022.
- The increasing trend indicates that Republic Services Inc is becoming more efficient in utilizing its fixed assets to generate revenue.
- However, it should be noted that data is not available for 2023 and 2024, which limits our ability to assess the most recent performance in this aspect.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company uses its total assets to generate revenue. It is calculated by dividing net sales by average total assets.
- Republic Services Inc has shown a consistent improvement in total asset turnover, rising from 0.43 in 2020 to 0.49 in 2024.
- The increasing trend indicates that the company is utilizing its total assets more effectively to drive sales.
- This steady improvement suggests that Republic Services Inc is managing its assets efficiently to generate revenue growth over the years.
In conclusion, the analysis of Republic Services Inc's long-term activity ratios reveals a positive trend in both fixed asset turnover and total asset turnover. The company's increasing efficiency in utilizing assets to generate revenue indicates sound operational management and potential for sustained growth in the future.