EchoStar Corporation (SATS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 24.06 | 1.46 | 9.25 | 10.53 | 13.02 |
| Receivables turnover | 13.60 | 8.47 | 9.98 | 9.79 | 9.17 |
| Payables turnover | 20.67 | 0.89 | 8.72 | 8.43 | 8.35 |
| Working capital turnover | — | 6.45 | 1.35 | 1.21 | 0.77 |
Inventory turnover measures how many times a company sells and replaces its inventory during a specific period. EchoStar Corporation's inventory turnover has shown significant variation over the past five years, with a substantial increase in 2023 compared to previous years. This may indicate improvements in inventory management efficiency or changes in the company's sales and procurement strategies.
Receivables turnover reflects how quickly a company collects its accounts receivable. EchoStar's receivables turnover has generally been stable over the years, with a slight increase in 2023 compared to the previous period. This implies the company has been maintaining a consistent collections process.
Payables turnover measures the rate at which a company pays its suppliers. EchoStar's payables turnover has been volatile, experiencing a notable increase in 2023 after a significant drop in 2022. This may suggest changes in the company's payment terms or vendor relationships.
Working capital turnover indicates how efficiently a company uses its working capital to generate sales. In 2023, EchoStar did not have a reported figure for this ratio. However, in the previous years, there has been a consistent increase in the working capital turnover, indicating improved efficiency in utilizing working capital to generate revenue.
In conclusion, EchoStar Corporation's activity ratios indicate various trends in managing its inventory, receivables, payables, and working capital over the past five years. Understanding these ratios can provide insights into the company's operational efficiency and effectiveness in managing its resources.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.17 | 249.98 | 39.46 | 34.66 | 28.04 |
| Days of sales outstanding (DSO) | days | 26.83 | 43.08 | 36.57 | 37.28 | 39.79 |
| Number of days of payables | days | 17.65 | 408.74 | 41.86 | 43.29 | 43.69 |
Based on the activity ratios provided for EchoStar Corporation, we can observe significant fluctuations over the past five years:
1. Days of Inventory on Hand (DOH):
- In 2023, EchoStar reduced its days of inventory on hand to 15.17 days, indicating a more efficient management of its inventory compared to the previous year.
- However, in 2022, there was a significant spike to 249.98 days, suggesting potential issues with inventory management that could lead to increased holding costs and obsolete inventory.
- The trend from 2020 to 2022 shows inconsistent inventory management practices, with notable improvements seen in recent years.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding decreased to 26.83 days in 2023, indicating faster collection of accounts receivable compared to the previous year.
- While the DSO ratio fluctuated over the years, there seems to be a general downward trend from 2019 to 2023, suggesting improvements in the company's credit and collection policies.
3. Number of Days of Payables:
- EchoStar significantly reduced its number of days of payables to 17.65 days in 2023, indicating a more efficient management of its payables compared to the previous year.
- In 2022, there was a notable increase to 408.74 days, which may signal potential liquidity or vendor management issues that could impact supplier relationships.
- The trend over the years shows fluctuations in payment practices, with a significant improvement in payables management observed in 2023.
Overall, EchoStar Corporation has shown improvements in inventory management efficiency, accounts receivable collection, and payables management in 2023 compared to the previous year. However, the company experienced significant fluctuations in these activity ratios over the five-year period, highlighting the importance of consistent and effective working capital management strategies.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.60 | 0.26 | 5.20 | 4.01 | 0.71 |
| Total asset turnover | 0.27 | 0.03 | 0.33 | 0.25 | 0.25 |
The fixed asset turnover ratio for EchoStar Corporation has shown significant fluctuations over the past five years. In 2023, the ratio improved to 1.60 from 0.26 in 2022, indicating that the company generated $1.60 in sales for every dollar invested in fixed assets. This improvement suggests better utilization of fixed assets to generate revenue compared to the previous year.
Similarly, the total asset turnover ratio also portrayed fluctuations over the same period. In 2023, the ratio increased to 0.27 from 0.03 in 2022, implying that the company generated $0.27 in sales for every dollar invested in total assets. While this indicates an improvement in asset utilization compared to the previous year, the ratio remains relatively low.
Overall, EchoStar Corporation has shown some improvements in both fixed asset turnover and total asset turnover ratios in 2023, reflecting better efficiency in utilizing assets to generate sales revenue. However, the company may still have room for further enhancement in asset turnover efficiency to maximize profitability and return on investment.