Republic Services Inc (RSG)

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 111.29 105.98 108.99 105.08 101.33 92.92 88.51 104.05 112.13 87.22 89.23 89.43 92.89 124.49 127.09 133.07 132.91 136.75 133.42 134.23
Receivables turnover 9.43 9.00 9.30 9.40 9.01 8.55 8.53 10.15 10.22 9.89 10.44 10.56 10.71 10.59 11.13 10.64 10.04 10.10 10.30 10.86
Payables turnover 7.67 8.85 9.54 10.45 8.01 9.17 8.49 9.89 8.90 7.30 7.83 8.06 7.05 11.33 11.31 11.50 9.70 10.85 10.42 11.81
Working capital turnover — — — — — — — — — — — — — — — — — — — —

Inventory turnover for Republic Services, Inc. has shown a consistent increasing trend over the past eight quarters, indicating that the company is efficiently managing its inventory levels and turning over its stock more frequently. This suggests effective inventory management practices, such as maintaining optimal stock levels and timely sales.

Receivables turnover has also shown a generally increasing trend, reflecting the company's ability to collect outstanding receivables from customers more efficiently. A higher turnover ratio indicates that Republic Services, Inc. is effectively converting its credit sales into cash, reducing the risk of bad debts and improving liquidity.

Payables turnover has varied over the quarters but generally remains within a stable range. The fluctuations suggest changes in the company's payment terms with suppliers. A higher payables turnover ratio may indicate that Republic Services, Inc. is taking longer to pay its creditors, potentially improving its own cash flow position.

Unfortunately, there is no data available for working capital turnover, so its efficiency in generating sales relative to the level of working capital remains unknown. It would be beneficial to include this ratio in future analyses to gain insights into how effectively Republic Services, Inc. is utilizing its working capital to generate revenue.

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 3.28 3.44 3.35 3.47 3.60 3.93 4.12 3.51 3.26 4.18 4.09 4.08 3.93 2.93 2.87 2.74 2.75 2.67 2.74 2.72
Days of sales outstanding (DSO) days 38.69 40.56 39.24 38.81 40.53 42.70 42.81 35.96 35.72 36.90 34.97 34.55 34.08 34.46 32.80 34.30 36.34 36.14 35.42 33.61
Number of days of payables days 47.58 41.27 38.28 34.92 45.56 39.80 42.99 36.89 41.03 50.01 46.61 45.31 51.79 32.23 32.27 31.73 37.61 33.65 35.03 30.90

The activity ratios for Republic Services, Inc. provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH): This ratio indicates how many days, on average, the company holds inventory before selling it. A lower DOH is generally favorable as it implies faster inventory turnover. Republic Services' DOH has been fluctuating over the last eight quarters, ranging from 3.97 to 4.96 days. The decreasing trend from Q2 2022 to Q1 2023 (4.96 days to 4.15 days) suggests improved inventory management efficiency during this period.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect payment from its customers after a sale. A lower DSO indicates a more efficient accounts receivable management process. Republic Services' DSO has shown some variability, with values ranging from 46.09 to 53.70 days over the past eight quarters. The decreasing trend from Q2 2022 to Q1 2023 (53.70 days to 48.47 days) suggests an improvement in the company's collection efficiency during this period.

3. Number of Days of Payables: This ratio represents the average number of days it takes for the company to pay its suppliers. A higher number of days of payables may indicate better cash flow management as the company is taking longer to settle its payables. Republic Services' days of payables have been fluctuating, with values ranging from 41.71 to 57.61 days over the last eight quarters. The increasing trend from Q2 2022 to Q1 2023 (51.67 days to 57.61 days) suggests the company took longer to pay its suppliers during this period.

Overall, monitoring these activity ratios can help stakeholders assess how effectively Republic Services is managing its working capital and operating cycle, providing valuable insights into the company's operational efficiency and liquidity management.

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 1.56 1.58 1.58 1.53 1.50 1.44 1.38 1.49 1.49 1.44 1.42 1.39 1.42 1.41 1.43 1.46 1.45 1.47 1.49 1.49
Total asset turnover 0.55 0.56 0.56 0.56 0.54 0.53 0.51 0.55 0.53 0.53 0.52 0.52 0.51 0.52 0.53 0.54 0.54 0.54 0.55 0.55

Republic Services, Inc.'s fixed asset turnover ratio has shown a generally increasing trend over the past eight quarters, ranging from 1.18 in Q2 2022 to 1.37 in Q3 2023. This indicates that the company is generating more revenue per dollar of fixed assets invested in its operations, reflecting improved efficiency in asset utilization.

On the other hand, the total asset turnover ratio has fluctuated within a narrower range, with a low of 0.43 in Q2 2022 and a high of 0.49 in Q3 2023 and Q1 2023. While the ratio has shown some variability, it generally indicates the company's ability to generate sales relative to its total assets.

Overall, the fixed asset turnover ratio suggests that Republic Services, Inc. has been effectively utilizing its fixed assets to drive revenue growth, while the total asset turnover ratio indicates that the company has been efficient in utilizing all of its assets to generate sales.