Southwestern Energy Company (SWN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.09 | 1.36 | 1.24 | 12.48 | 0.69 |
| Receivables turnover | 12.93 | 6.81 | 3.45 | 6.72 | 9.43 |
| Payables turnover | 1.37 | 0.11 | 0.18 | 5.25 | 0.37 |
| Working capital turnover | — | — | — | — | — |
Southwestern Energy Company's activity ratios provide insight into the efficiency of the company's operations.
1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company collects cash from its customers.
- A higher ratio indicates that the company is more effective in collecting outstanding receivables.
- Southwestern Energy's receivables turnover has fluctuated over the past five years, with a peak in 2022 (10.71) and a low in 2021 (5.75).
- The decreasing trend in 2023 (9.59) suggests a slight decline in the efficiency of collecting receivables compared to the previous year.
2. Inventory Turnover:
- The inventory turnover ratio assesses how effectively the company manages its inventory levels.
- The absence of inventory turnover data for all years indicates that detailed analysis of inventory management efficiency is not available from the provided information.
3. Payables Turnover:
- The payables turnover ratio evaluates how quickly the company pays its suppliers.
- A payables turnover ratio of 0.00 across all years might signal that the company may not have a significant amount of outstanding payables or may be managing its payment terms differently.
4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently the company utilizes its working capital to generate revenue.
- The absence of working capital turnover data for all years implies a lack of information on how well Southwestern Energy utilizes its working capital to support its operations.
In conclusion, the receivables turnover ratio highlights Southwestern Energy's effectiveness in collecting outstanding receivables, while the lack of data on inventory turnover and payables turnover limits a comprehensive analysis of the company's overall working capital management and inventory efficiency.
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 | 118.01 | 268.65 | 294.25 | 29.24 | 525.75 |
| Days of sales outstanding (DSO) | days | 28.22 | 53.57 | 105.80 | 54.31 | 38.69 |
| Number of days of payables | days | 266.01 | 3,399.87 | 2,061.37 | 69.53 | 992.88 |
Based on the data provided for Southwestern Energy Company's activity ratios, we can analyze the efficiency of the company's operations over the five-year period:
1. Days of Inventory on Hand (DOH): Unfortunately, the data for this ratio is missing for all years, making it difficult to assess how efficiently the company manages its inventory levels and turnover.
2. Days of Sales Outstanding (DSO): This ratio measures the average number of days it takes for the company to collect revenue after making a sale. The trend indicates an improvement in 2022 and 2019, with lower DSO figures. However, there was a spike in 2021, suggesting potential issues with collecting outstanding sales.
3. Number of Days of Payables: The data for this ratio is also missing for all years, preventing an analysis of how many days on average the company takes to pay its suppliers.
In conclusion, the information provided on Southwestern Energy Company’s activity ratios indicates an improvement in sales collection efficiency in certain years, but the lack of data for inventory management and payables hinders a comprehensive analysis of the company's overall operating efficiency and effectiveness.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.89 | 0.88 | 0.40 | 0.60 | 0.62 |
| Total asset turnover | 0.73 | 0.74 | 0.34 | 0.48 | 0.48 |
The long-term activity ratios of Southwestern Energy Company indicate the company's efficiency in generating revenue from its long-term assets over the past five years. The fixed asset turnover ratio decreased from 1.38 in 2022 to 0.66 in 2023, suggesting a decline in the company's ability to utilize its fixed assets to generate revenue efficiently. This could indicate potential underutilization or impairments in the value of the company's long-term assets during the period.
Similarly, the total asset turnover ratio declined from 1.16 in 2022 to 0.54 in 2023, reflecting a decrease in the company's overall efficiency in utilizing its total assets to generate revenue. This downward trend may indicate challenges in efficiently managing and utilizing the company's assets to drive sales and business growth over the past year.
Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios reflects potential inefficiencies in Southwestern Energy Company's long-term asset utilization, which may warrant further analysis to identify the underlying causes and potential areas for improvement in the company's operational performance.