Sempra Energy (SRE)

Short-term

Turnover ratios

The inventory turnover ratio for Sempra has shown a general upward trend over the last eight quarters, indicating the efficient management of inventory levels. This ratio measures how many times the company's inventory is sold and replaced during the period. The higher the ratio, the better, as it indicates that the company is selling inventory quickly.

The receivables turnover ratio has also seen fluctuations but has generally been at a moderate level. This ratio measures the efficiency of a company in collecting cash from its credit sales. A higher ratio suggests that customers are paying their debts more quickly.

On the other hand, the payables turnover ratio has fluctuated over the quarters but has generally remained stable. This ratio represents how efficiently a company is managing its payments to suppliers. A higher ratio indicates that the company is paying its suppliers more quickly.

Unfortunately, the working capital turnover ratio data is not available for analysis in the provided table. This ratio typically assesses how efficiently a company utilizes its working capital to generate sales revenue. It would have provided insight into how effectively Sempra is using its available capital to support its operations and generate revenue.

Overall, the activity ratios indicate that Sempra has been relatively efficient in managing its inventory levels, collecting cash from credit sales, and managing payments to suppliers.

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Average number of days

The Days of Inventory on Hand (DOH) for Sempra have fluctuated over the past 8 quarters, ranging from 18.16 days to 41.86 days. The trend shows that Sempra has been able to effectively manage its inventory levels, with a significant decrease observed in Q1 2023 compared to Q4 2022.

The Days of Sales Outstanding (DSO) metric indicates how quickly Sempra is able to collect its accounts receivable. The DSO values have varied between 55.05 days and 88.15 days over the past 8 quarters, with the lowest value recorded in Q2 2023. This suggests that Sempra has improved its efficiency in collecting payments from customers in recent quarters.

The Number of Days of Payables metric reflects the average number of days it takes for Sempra to pay its suppliers. The values range from 128.66 days to 191.46 days over the past 8 quarters. An increase in the number of days of payables may indicate that Sempra is taking longer to settle its outstanding payables, which could have implications for its relationships with suppliers.

Overall, analyzing these activity ratios provides insight into Sempra's operational efficiency, inventory management, and liquidity position. The trends observed in these ratios can help stakeholders assess the company's financial health and performance over time.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Sempra, the ratio has been relatively stable over the past eight quarters, ranging from 0.30 to 0.34. This indicates that Sempra is generating approximately $0.30 to $0.34 in revenue for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio measures the company's overall efficiency in generating revenue from all its assets. Sempra's total asset turnover ratio has also remained relatively consistent, fluctuating between 0.18 and 0.21 over the same period. This suggests that, on average, Sempra is generating approximately $0.18 to $0.21 in revenue for every dollar of assets it owns.

Overall, the stability of these ratios indicates that Sempra has been maintaining a consistent level of efficiency in utilizing both its fixed and total assets to generate revenue over the past two years. However, further analysis of industry benchmarks and trends over time would be necessary to provide a more comprehensive assessment of Sempra's long-term activity ratios.