Southwest Gas Holdings Inc (SWX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 52.93 | 1.81 | 9.82 | 1,208.17 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | 27.69 | 17.42 | — | — |
Southwest Gas Holdings Inc's activity ratios provide insights into how efficiently the company is managing its various operational aspects.
1. Inventory Turnover:
- Southwest Gas Holdings Inc's inventory turnover ratio has varied significantly over the years, suggesting fluctuations in how quickly the company is selling its inventory.
- The ratio was extremely high in December 2020 at 1,208.17, indicating that the company sold its inventory more than 1,000 times during that year. However, this figure dropped dramatically to 9.82 by December 2021.
- The subsequent years saw further fluctuations with the ratio being 1.81 in 2022, surging to 52.93 in 2023, and information missing for 2024. The increase in 2023 could indicate improved inventory management or changes in sales strategy.
2. Receivables Turnover:
- Data on receivables turnover is not available, which limits our ability to assess the efficiency of Southwest Gas Holdings Inc in collecting outstanding receivables.
3. Payables Turnover:
- Similar to receivables turnover, information on payables turnover is not provided, making it difficult to evaluate how effectively the company is managing its accounts payable.
4. Working Capital Turnover:
- The working capital turnover ratio for Southwest Gas Holdings Inc was not calculable for the years up to 2021 but stood at 17.42 in 2022 and increased to 27.69 in 2023, with data missing for 2024.
- This indicates that the company is generating more revenue relative to its working capital investment, showcasing increased efficiency in its operational cycle in those years.
In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into how Southwest Gas Holdings Inc is managing its operational activities, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 6.90 | 201.38 | 37.16 | 0.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, Southwest Gas Holdings Inc's activity ratios can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
- As of December 31, 2020, the company had only 0.30 days of inventory on hand, indicating a very efficient management of inventory.
- However, there was a significant increase in the DOH to 37.16 days as of December 31, 2021, suggesting a potential slowdown in inventory turnover.
- The DOH increased substantially to 201.38 days as of December 31, 2022, which could indicate overstocking of inventory or inefficiencies in inventory management.
- By December 31, 2023, the DOH dropped to 6.90 days, indicating an improvement in inventory management efficiency, possibly due to inventory optimization efforts.
- The data for December 31, 2024 is not available, which prevents a complete analysis of the trend in inventory management for that year.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO) for any of the years specified, which limits the ability to assess the company's efficiency in collecting accounts receivable over time.
3. Number of Days of Payables:
- Similar to DSO, information about the Number of Days of Payables is not available for any of the years presented, making it difficult to evaluate the company's payment practices and supplier relationships.
In conclusion, based on the limited data provided, Southwest Gas Holdings Inc's inventory management efficiency fluctuated over the years, with significant changes in the Days of Inventory on Hand. However, without information on DSO and payables, a comprehensive analysis of the company's overall activity ratios is not possible.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.33 | 0.41 | 0.47 |
| Total asset turnover | 0.43 | 0.46 | 0.38 | 0.29 | 0.38 |
Southwest Gas Holdings Inc's fixed asset turnover has shown fluctuations over the years, with a significant increase from 2021 to 2022, reaching 4.33. This indicates that the company efficiently utilized its fixed assets to generate revenue in 2022. However, there is missing data for 2023 and 2024, making it difficult to assess the trend in recent years.
Looking at the total asset turnover, the company experienced a decrease in 2021 compared to 2020, suggesting a lower efficiency in generating sales relative to its total assets. The ratio improved in 2022, but dropped slightly in 2024. Overall, Southwest Gas Holdings Inc's total asset turnover has been relatively stable, albeit with some fluctuations.
In conclusion, while the fixed asset turnover saw a sharp increase in 2022, the total asset turnover remained relatively consistent with some fluctuations. Keep in mind that the missing data for 2023 and 2024 makes it challenging to provide a complete long-term analysis of Southwest Gas Holdings Inc's activity ratios.