Sempra Energy (SRE)

Short-term

Turnover ratios

From the provided data, we can analyze the activity ratios of Sempra Energy over various periods.

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. A higher ratio indicates that the company is selling its inventory quickly.
- Sempra Energy's inventory turnover has fluctuated over the quarters, with a general decreasing trend from March 2023 to December 2024.
- The ratio peaked at 10.58 in March 2020 and has since ranged between 5.52 and 9.31, implying some variability in inventory management efficiency.

2. Receivables Turnover:
- The receivables turnover ratio reflects how well a company collects outstanding payments from its customers.
- Sempra Energy's receivables turnover has shown considerable variation over different periods, with peaks and troughs in the ratio.
- The ratio ranged from 5.03 to 9.12, with a notable increase in the turnover between June 2023 and September 2023.

3. Payables Turnover:
- The payables turnover ratio measures the rate at which a company pays its suppliers.
- Sempra Energy's payables turnover has remained relatively stable, with a slight decrease from 1.91 in March 2020 to around 1.37 in December 2024.
- The consistency in payables turnover indicates a steady pace of payments to suppliers over the years.

4. Working Capital Turnover:
- The working capital turnover ratio is used to assess the efficiency of a company in utilizing its working capital to generate revenue.
- In the provided data, the working capital turnover for Sempra Energy is not available for any reporting period, suggesting that specific data related to working capital turnover is not disclosed.

Overall, the analysis of activity ratios for Sempra Energy highlights fluctuations in efficiency metrics related to inventory management and collection of receivables, while indicating relatively stable payment practices to suppliers.

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Average number of days

Sempra Energy's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): The trend in Sempra Energy's DOH shows fluctuations over the periods. The company had an increasing trend from March 31, 2020, to September 30, 2022, indicating a buildup of inventory. However, from March 31, 2023, the DOH decreased, suggesting better inventory management. Overall, Sempra Energy maintained its inventory for an average of around 50 days, with the highest being 66.13 days on September 30, 2022.

2. Days of Sales Outstanding (DSO): The DSO of Sempra Energy varied over the periods. There was a general downward trend from March 31, 2020, to December 31, 2021, indicating improved efficiency in collecting receivables. However, the DSO increased from March 31, 2022, to September 30, 2023, before slightly decreasing by December 31, 2024. On average, Sempra Energy collected receivables in around 50 days, with the highest being 72.55 days on March 31, 2022.

3. Number of Days of Payables: The number of days Sempra Energy took to pay its payables fluctuated during the periods. The days of payables increased from March 31, 2020, to December 31, 2022, indicating the company was taking longer to pay its suppliers. However, there was a decrease by March 31, 2024. On average, Sempra Energy took around 250 days to pay its payables, with the longest being 299.39 days on March 31, 2023.

Overall, these activity ratios suggest that Sempra Energy might need to focus on optimizing its inventory levels, maintaining efficient collections of receivables, and managing its payables effectively to improve its working capital management and overall operational efficiency.

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Long-term

Sempra Energy's long-term activity ratios provide insight into how efficiently the company is utilizing its assets.

1. Fixed Asset Turnover: This ratio measures how effectively the company is utilizing its fixed assets to generate revenue. From March 2020 to December 2024, Sempra Energy's fixed asset turnover ratio fluctuated within a range of 0.17 to 0.34. The ratio peaked at 0.34 in March 2023, indicating that for every dollar invested in fixed assets, the company generated $0.34 in revenue. However, the ratio dropped to 0.17 by December 2024, possibly suggesting a decrease in revenue relative to fixed asset investments.

2. Total Asset Turnover: This ratio reflects the company's overall ability to generate revenue based on its total assets. Over the same period, Sempra Energy's total asset turnover ratio ranged from 0.14 to 0.21. The ratio increased gradually from 0.16 in March 2020 to 0.21 in June 2023 before declining to 0.15 by March 2024. This trend indicates fluctuations in revenue generation efficiency relative to total assets.

Overall, the analysis of Sempra Energy's long-term activity ratios suggests varying levels of efficiency in asset utilization over the years, with fluctuations in fixed asset turnover and total asset turnover ratios. Further investigation into the underlying factors driving these changes may be warranted to assess the company's operational performance and strategic initiatives.