SunCoke Energy Inc (SXC)

Short-term

Turnover ratios

SunCoke Energy Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover: This ratio has been relatively stable over the years, indicating that SunCoke efficiently manages its inventory by turning it over multiple times within a year.

2. Receivables Turnover: SunCoke has shown an increasing trend in receivables turnover, which suggests that the company has been effective in collecting payments from customers. A higher turnover reflects a shorter time period for SunCoke to collect its accounts receivable.

3. Payables Turnover: The payables turnover ratio has fluctuated over the years but remains at a moderate level. This indicates that SunCoke is able to manage its payables effectively, with a higher turnover indicating that the company is paying its suppliers more quickly.

4. Working Capital Turnover: This ratio measures how efficiently the company utilizes its working capital to generate sales revenue. SunCoke has shown a decreasing trend in working capital turnover, suggesting that the company may be becoming less efficient in generating sales revenue from its working capital.

Overall, SunCoke Energy Inc's activity ratios indicate that the company has been effectively managing its inventory and receivables, while also maintaining a reasonable level of control over its payables. However, a decreasing trend in working capital turnover may warrant further analysis to identify potential areas for improvement in operational efficiency.

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Average number of days

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. SunCoke Energy Inc's DOH has been decreasing over the years, from 42 days in 2019 to 38.65 days in 2023. This indicates that the company has been able to turn its inventory into sales quicker in recent years.

Days of sales outstanding (DSO) indicates how quickly a company collects cash from its customers. SunCoke Energy Inc's DSO fluctuated over the years, with a peak of 19.39 days in 2022 and a low of 14.07 days in 2019. This suggests some variability in the company's collection efficiency.

Number of days of payables considers how long a company takes to pay off its suppliers. SunCoke Energy Inc's payables days have been relatively stable over the years, ranging from 36.23 days in 2022 to 40.68 days in 2019. This implies the company has maintained consistent payment terms with its suppliers.

Overall, SunCoke Energy Inc's activity ratios show a mixed performance. While the company has improved its inventory turnover, there has been some variability in its collection efficiency, and its payment terms to suppliers have remained relatively stable. Monitoring these ratios can provide insights into the company's operational efficiency and cash flow management over time.

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Long-term

SunCoke Energy Inc's long-term activity ratios provide insights into the company's efficiency in utilizing its fixed and total assets to generate revenue.

Fixed asset turnover has been gradually increasing over the last five years, with a notable improvement from 1.13 in 2021 to 1.73 in 2023. This indicates that the company is generating more sales relative to its investment in fixed assets like property, plant, and equipment. A higher fixed asset turnover ratio suggests improved efficiency in utilizing fixed assets to generate revenue.

Total asset turnover has also shown a positive trend, increasing from 0.91 in 2019 to 1.24 in 2023. This indicates that the company is generating more revenue relative to its total assets over the years. A higher total asset turnover ratio signifies that the company is effectively utilizing all its assets, including both fixed and current assets, to generate sales.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that SunCoke Energy Inc has been progressively improving its efficiency in generating revenue from its long-term assets. This improved efficiency can result in higher profitability and overall financial performance for the company.