Southwest Gas Holdings Inc (SWX)

Short-term

Turnover ratios

Based on the provided data for Southwest Gas Holdings Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- There has been significant fluctuation in the inventory turnover ratio over the years. The ratio ranged from as low as 1,208.17 to as high as 2.49.
- Generally, a higher inventory turnover ratio indicates efficient management of inventory, while a lower ratio may imply slow-moving or excessive inventory.
- The company saw a drastic decrease from 1,208.17 in December 2020 to 9.82 in December 2021, followed by fluctuating values in subsequent periods.

2. Receivables Turnover:
- All values for receivables turnover are missing, indicating that there was no data available or the company does not disclose this information.
- Receivables turnover measures how efficiently a company collects its outstanding receivables.

3. Payables Turnover:
- All values for payables turnover are missing, suggesting that the company may not provide this information or does not actively manage its payment cycle.
- Payables turnover ratio helps in assessing how quickly a company pays its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales.
- Southwest Gas Holdings Inc showed varying values over the years, with notable peaks in September 2021 (93.90) and March 2024 (88.28).
- A higher ratio generally signifies better utilization of working capital in generating revenues.

In conclusion, the analysis of Southwest Gas Holdings Inc's activity ratios suggests fluctuating trends in inventory turnover and working capital turnover, while data for receivables and payables turnover were not available. Monitoring these ratios can provide insights into the company's operational efficiency, inventory management, and working capital utilization.

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Average number of days

Based on the provided data for Southwest Gas Holdings Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH for Southwest Gas Holdings Inc fluctuated over the years, ranging from as low as 0.30 days on December 31, 2020, to as high as 146.30 days on December 31, 2022.
- A high DOH indicates that the company may be holding excess inventory, which could tie up capital and lead to storage costs.
- Conversely, a low DOH suggests efficient inventory management and timely turnover of inventory.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO), which is a measure of how long it takes for a company to collect outstanding sales revenue.
- DSO is crucial for understanding the efficiency of the company in collecting payments from its customers.

3. Number of Days of Payables:
- The data does not provide information on the Number of Days of Payables, which measures how long a company takes to pay its suppliers.
- This ratio is important in managing cash flow and relationships with suppliers.

In conclusion, while we can analyze the DOH for Southwest Gas Holdings Inc based on the provided data, a comprehensive assessment of activity ratios, including DSO and Number of Days of Payables, is limited due to the absence of relevant information. For a more holistic analysis of the company's operational efficiency, additional data on DSO and payables turnover would be necessary.

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Long-term

Southwest Gas Holdings Inc's fixed asset turnover ratio has shown significant fluctuations over the years, starting at a low of 0.48 in March 2020 and eventually surging to 4.93 by September 2023. This indicates that the company effectively utilized its fixed assets to generate sales revenue during this period. However, the ratio dropped to "—" from December 2023 onwards, which may suggest a change in the company's asset management strategy or reporting practices.

On the other hand, the total asset turnover ratio also exhibited variability, declining from 0.39 in March 2020 to 0.29 by December 2021 before gradually increasing to 0.44 by June 2024. This ratio measures the efficiency of the company in generating revenue from its total assets. The consistent improvement in this ratio from 2022 onwards indicates that Southwest Gas Holdings Inc became more effective in utilizing all its assets to generate sales.

Overall, Southwest Gas Holdings Inc's long-term activity ratios reflect fluctuations in its efficiency in utilizing fixed and total assets to generate revenue. The sharp increase in fixed asset turnover until September 2023 followed by a decline and the gradual improvement in total asset turnover from 2022 onwards suggest changes in the company's asset management and operational performance dynamics.