EchoStar Corporation (SATS)

Short-term

Turnover ratios

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. A higher ratio indicates that the company is selling inventory quickly. EchoStar Corporation's inventory turnover remained relatively stable at around 7.60 in 2020 and 2021, but saw a decrease to 6.97 in 2022. However, there was a significant improvement in inventory turnover to 17.96 in 2023 and further to 22.27 in 2024. This indicates that EchoStar Corporation was able to sell its inventory at a much faster rate in the later years.

2. Receivables Turnover:
- The receivables turnover ratio shows how efficiently a company collects its outstanding receivables. The data shows that there is no information available for receivables turnover for any of the years provided. This means we are unable to analyze how efficiently EchoStar Corporation collects payments from its customers.

3. Payables Turnover:
- The payables turnover ratio measures how many times, on average, a company pays its suppliers during a specific period. Similar to receivables turnover, there is no data available for payables turnover for any of the years provided. Without this information, we cannot assess EchoStar Corporation's payment practices and relationships with its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how well a company utilizes its working capital to generate sales. EchoStar Corporation's working capital turnover was 1.27 in 2020, increased to 1.35 in 2021, dropped to 1.17 in 2022, and did not have available data for 2023. However, there was a significant surge in working capital turnover to 6.99 in 2024. This suggests that the company was able to efficiently generate sales relative to its working capital in 2024.

In conclusion, EchoStar Corporation's inventory turnover improved significantly over the years, indicating better management of inventory. However, the lack of data for receivables and payables turnover limits our ability to assess the company's effectiveness in collecting payments and managing supplier relationships. The working capital turnover also showed fluctuations, with a notable increase in efficiency in generating sales relative to working capital in 2024. Further analysis in these areas would provide a more comprehensive view of EchoStar Corporation's operational efficiency and financial health.

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Average number of days

Based on the provided data for EchoStar Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- In 2020, EchoStar had 48.05 days of inventory on hand, which slightly decreased to 48.01 days in 2021.
- However, there was a significant increase in inventory turnover efficiency in 2022, with only 52.33 days of inventory on hand.
- This trend continued in 2023 and 2024, with the number of days of inventory on hand further decreasing to 20.32 and 16.39 days, respectively.
- Overall, EchoStar's management of inventory improved over the years, indicating better inventory turnover and potentially improved cash flow from reduced holding costs.

2. Days of Sales Outstanding (DSO):
- No data is provided for Days of Sales Outstanding for any of the years, indicating a lack of information to assess the efficiency of EchoStar's accounts receivable collection process.
- Without this data, it is challenging to evaluate how quickly the company collects payments from customers, potentially impacting cash flow and liquidity.

3. Number of Days of Payables:
- Similar to DSO, there is no data provided for the Number of Days of Payables for any of the years, which affects the analysis of how long EchoStar takes to pay its suppliers.
- Understanding the payment terms with suppliers is crucial for assessing the company's working capital management and relationships with creditors.

In conclusion, while the analysis of Days of Inventory on Hand shows an improvement in inventory management efficiency for EchoStar Corporation, the absence of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive evaluation of the company's overall activity ratios. Further information on accounts receivable and accounts payable turnover would provide additional insights into EchoStar's operational efficiency and financial health.

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Long-term

The fixed asset turnover ratio for EchoStar Corporation has shown a gradual increase from 0.75 in 2020 to 0.80 in 2021, and further to 0.84 in 2022. This indicates that the company is generating more revenue per dollar invested in fixed assets over this period. However, the data for 2023 and 2024 is missing, making it difficult to assess the trend more accurately.

On the other hand, the total asset turnover ratio has fluctuated slightly over the same period, starting at 0.27 in 2020, increasing to 0.33 in 2021, and then declining to 0.32 in 2022 and further to 0.30 in 2023 before dropping to 0.26 in 2024. This ratio reflects how efficiently the company is using its total assets to generate revenue, and the fluctuations indicate changes in the company's overall asset utilization efficiency over the years.

Overall, the increasing trend in fixed asset turnover suggests improved efficiency in generating revenue from fixed assets, while the fluctuating total asset turnover indicates varying levels of efficiency in utilizing all assets to drive revenue. The missing data for 2023 and 2024 in the fixed asset turnover ratio limits a comprehensive evaluation of EchoStar Corporation's long-term activity ratios.