Spire Inc (SR)
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 | 1.05 | 1.02 | 1.03 | 1.21 | 0.65 | 0.56 | 0.78 | 1.34 | 2.78 | 4.46 | 6.13 | 7.90 | 7.59 | 7.59 | 10.84 | 13.34 | 7.93 | 6.71 | 8.40 | 10.45 |
| Receivables turnover | 5.82 | 13.88 | 9.42 | 5.19 | 5.02 | 10.38 | 7.39 | 4.75 | 4.75 | 6.71 | 6.52 | 4.81 | 6.37 | 14.97 | 12.84 | 7.49 | 7.21 | 16.12 | 12.07 | 5.97 |
| Payables turnover | 0.99 | 1.13 | 1.28 | 1.06 | 0.48 | 0.39 | 0.40 | 0.61 | 2.12 | 3.32 | 4.51 | 4.04 | 5.37 | 5.98 | 8.02 | 7.66 | 4.78 | 4.37 | 4.47 | 4.06 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided activity ratios for Spire Inc., we can observe the following trends:
1. Inventory Turnover:
The inventory turnover ratio measures how efficiently a company manages its inventory levels. Spire's inventory turnover has fluctuated over the periods, ranging from a low of 2.19 to a high of 6.31. The increasing trend from Q1 2023 to Q3 2023 indicates that the company improved its inventory management efficiency. However, the subsequent decline in Q4 2023 and Q1 2024 suggests a potential buildup of inventory that may need monitoring.
2. Receivables Turnover:
The receivables turnover ratio reflects how quickly a company collects its accounts receivable. Spire's receivables turnover has varied significantly, with values ranging from 3.05 to 8.59. The substantial increase in Q4 2023 indicates an improvement in collecting receivables efficiently. However, the decrease in Q1 2024 suggests a longer collection period, which may impact cash flow.
3. Payables Turnover:
The payables turnover ratio measures how efficiently a company pays its suppliers. Spire's payables turnover has also shown variability, with values between 1.50 and 6.39. The increasing trend from Q1 2023 to Q3 2023 indicates that the company was paying its suppliers more promptly. However, the decrease in Q4 2023 and Q1 2024 suggests potential challenges in managing payables effectively.
4. Working Capital Turnover:
Unfortunately, the data provided does not include values for the working capital turnover ratio across the periods. As this ratio reflects how effectively a company utilizes its working capital to generate sales, it would be beneficial to have this information for a more holistic understanding of Spire's operational efficiency.
In summary, Spire Inc. has demonstrated varying levels of efficiency in managing its inventory, collecting receivables, and paying suppliers across the periods analyzed. Monitoring these activity ratios can provide insights into the company's operational performance and help identify areas for improvement in working capital management.
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 | 346.94 | 356.58 | 353.37 | 301.66 | 558.67 | 646.83 | 470.23 | 272.05 | 131.32 | 81.81 | 59.54 | 46.20 | 48.12 | 48.08 | 33.68 | 27.37 | 46.02 | 54.40 | 43.45 | 34.93 |
| Days of sales outstanding (DSO) | days | 62.75 | 26.30 | 38.74 | 70.32 | 72.76 | 35.15 | 49.40 | 76.79 | 76.78 | 54.40 | 56.02 | 75.89 | 57.27 | 24.38 | 28.43 | 48.74 | 50.64 | 22.64 | 30.24 | 61.15 |
| Number of days of payables | days | 368.51 | 322.90 | 285.34 | 343.00 | 759.68 | 945.66 | 910.07 | 594.05 | 172.42 | 109.95 | 80.97 | 90.37 | 68.02 | 61.08 | 45.51 | 47.67 | 76.35 | 83.43 | 81.75 | 89.83 |
Days of Inventory on Hand (DOH) measures how many days it takes for a company to sell its average inventory. Spire Inc.'s DOH has been fluctuating over the past quarters, with a sharp decrease from 166.84 days in Q4 2022 to 80.91 days in Q4 2023, indicating better inventory management. However, there was a slight increase in Q1 2024 to 83.53 days, which suggests a slower turnover of inventory.
Days of Sales Outstanding (DSO) reflects the average number of days it takes for a company to collect payment after making a sale. Spire Inc.'s DSO improved significantly in Q4 2023 to 42.51 days compared to 106.92 days in Q4 2022, showing faster collection of receivables. However, there was an increase in Q1 2024 to 79.19 days, indicating a potential slowdown in collecting payments from customers.
Number of Days of Payables represents the average number of days it takes for a company to pay its suppliers. Spire Inc.'s payables days have been fluctuating, with a decrease in Q4 2023 to 73.27 days from 243.91 days in Q3 2022. This suggests the company is managing its payables more effectively. However, there was a slight increase in Q1 2024 to 88.73 days, implying a potential delay in paying suppliers.
Overall, Spire Inc. has shown improvements in managing its inventory and receivables, but there are some fluctuations in payables days. Further monitoring is recommended to ensure efficient management of working capital and cash flow.
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 | 3.52 | 4.02 | 4.36 | 4.97 | 4.65 | 4.23 | 4.32 | 4.08 | 4.57 | 4.52 | 4.52 | 4.57 | 3.78 | 4.05 | 4.16 | 3.24 | 3.64 | 4.09 | 4.72 | 6.06 |
| Total asset turnover | 0.23 | 0.24 | 0.25 | 0.26 | 0.23 | 0.21 | 0.21 | 0.21 | 0.22 | 0.23 | 0.24 | 0.23 | 0.20 | 0.21 | 0.22 | 0.22 | 0.24 | 0.26 | 0.27 | 0.27 |
Spire Inc.'s long-term activity ratios reflect the company's efficiency in managing its assets to generate revenue over the long term. The fixed asset turnover ratio has shown a decreasing trend from 0.45 in Q2 2023 to 0.40 in Q1 2024. This indicates that Spire Inc. generated $0.40 in revenue for every dollar invested in fixed assets in the most recent quarter.
The declining trend in the fixed asset turnover ratio may indicate that the company is facing challenges in effectively utilizing its fixed assets to generate revenue. It is important for Spire Inc. to closely monitor and improve the efficiency of its fixed asset utilization to enhance profitability and return on investment.
On the other hand, the total asset turnover ratio has remained relatively stable, ranging from 0.22 to 0.27 over the past eight quarters. This ratio indicates that Spire Inc. generated between $0.22 and $0.27 in revenue for every dollar invested in total assets during the respective quarters.
While the total asset turnover ratio provides a broader perspective on asset utilization, the stability in this ratio suggests that Spire Inc. has been maintaining a consistent level of efficiency in generating revenue relative to its total asset base.
In conclusion, Spire Inc. should focus on improving the utilization of its fixed assets to enhance its overall long-term efficiency and profitability. Monitoring and managing these activity ratios can help the company identify areas for improvement and drive sustainable growth in the future.