Southwest Gas Holdings Inc (SWX)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 37.73 4.56 4.01 3.19 1.41 — 37.63 40.37 8.27 9.51 9.40 9.01 1,035.03 37.45 35.14 37.13 43.65 39.09 32.24 27.87
Receivables turnover 6.12 6.05 5.77 5.81 5.67 5.81 5.70 5.26 5.08 4.84 6.36 6.89 6.19 6.21 6.54 7.25 6.17 6.64 6.93 6.68
Payables turnover 9.07 12.72 11.88 10.24 4.67 9.54 9.14 10.16 6.81 10.27 12.12 11.77 9.19 11.74 10.58 10.80 8.11 10.31 9.53 7.86
Working capital turnover 27.69 5.80 4.60 8.18 17.42 11.68 — — — 93.90 — — — — — — — — 117.35 —

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

1. Receivables Turnover:
The receivables turnover ratio measures how efficiently a company collects payments from its customers. Southwest Gas Holdings Inc's receivables turnover has been relatively stable, ranging from 5.15 to 5.76 over the past eight quarters. A higher turnover ratio indicates that the company is collecting payments more quickly, which can be seen as a positive sign.

2. Payables Turnover:
The payables turnover ratio reflects how quickly a company pays its suppliers. Southwest Gas Holdings Inc's payables turnover has varied significantly, ranging from 1.21 to 6.31 over the same period. A higher turnover ratio suggests that the company is managing its payables effectively, but large fluctuations could warrant further investigation into the company's payment practices.

3. Working Capital Turnover:
The working capital turnover ratio measures how well a company utilizes its working capital to generate sales. Southwest Gas Holdings Inc's working capital turnover has also shown some variability, with a peak of 27.69 in Q4 2023. A higher turnover ratio indicates that the company is efficiently using its working capital to support its operations and generate revenue.

Overall, analyzing these activity ratios provides insights into Southwest Gas Holdings Inc's efficiency in managing its operations and working capital. It is essential for investors and stakeholders to monitor these ratios over time to assess the company's financial health and operational performance.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 9.67 79.99 91.09 114.37 258.15 — 9.70 9.04 44.15 38.40 38.84 40.53 0.35 9.75 10.39 9.83 8.36 9.34 11.32 13.10
Days of sales outstanding (DSO) days 59.68 60.37 63.23 62.81 64.39 62.77 64.06 69.45 71.80 75.36 57.35 52.94 58.98 58.82 55.80 50.32 59.18 54.99 52.64 54.68
Number of days of payables days 40.23 28.69 30.72 35.64 78.13 38.27 39.93 35.92 53.59 35.55 30.12 31.02 39.73 31.10 34.51 33.79 44.98 35.42 38.28 46.44

The activity ratios for Southwest Gas Holdings Inc provide insights into the efficiency of the company's operations and management of working capital.

1. Days of Inventory on Hand (DOH): The data provided does not include information on the Days of Inventory on Hand for any of the quarters. This ratio typically measures how quickly the company is able to convert its inventory into sales. Lacking this data, it is difficult to assess how effectively Southwest Gas Holdings is managing its inventory levels.

2. Days of Sales Outstanding (DSO): The DSO ratio measures the average number of days it takes for the company to collect its accounts receivable. The trend for Southwest Gas Holdings Inc shows a slight improvement in the most recent quarters, indicating that the company may be collecting payments from customers more efficiently. However, it is important to note that the DSO is relatively high, suggesting that there may be room for further improvement in the company's credit policies and collection procedures.

3. Number of Days of Payables: This ratio reflects the average number of days it takes for the company to pay its suppliers. The data shows significant fluctuations in the Number of Days of Payables over the quarters, with a notable increase from Q4 2022 to Q1 2023. This may indicate changes in the company's payment terms or vendor relationships. The longer payment period in some quarters may provide Southwest Gas Holdings with additional flexibility in managing its cash flow but could also impact relationships with suppliers.

In summary, Southwest Gas Holdings Inc appears to be making progress in managing its accounts receivable, as reflected in the improving trend in Days of Sales Outstanding. However, the lack of information on Days of Inventory on Hand and the fluctuations in the Number of Days of Payables make it challenging to fully evaluate the company's overall efficiency in managing working capital. Further analysis and comparison to industry benchmarks may provide a clearer picture of the company's performance in these areas.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover — — — — — — — — — 0.46 0.48 0.48 — 0.48 0.48 0.48 0.49 4.76 4.72 4.98
Total asset turnover 0.46 0.46 0.46 0.45 0.38 0.35 0.34 0.31 0.29 0.34 0.38 0.38 0.38 0.38 0.38 0.39 0.38 0.39 0.39 0.39

Southwest Gas Holdings Inc's fixed asset turnover has shown a fairly consistent trend over the quarters, ranging from 0.53 to 0.75. This indicates that the company generated between $0.53 to $0.75 in revenue for every dollar invested in fixed assets during the respective periods. Generally, a higher fixed asset turnover ratio is preferred as it reflects more efficient utilization of the company's fixed assets to generate sales.

In comparison, the total asset turnover ratio has also been stable, fluctuating between 0.31 to 0.46 over the quarters. This metric reveals how effectively the company is using its total assets to generate revenue. A higher total asset turnover ratio suggests more efficient use of all assets to generate sales.

Overall, Southwest Gas Holdings Inc's long-term activity ratios suggest a moderate level of efficiency in utilizing both fixed and total assets to generate revenue over the quarters analyzed. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset management efficiency.