Tidewater Inc (TDW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 27.37 | 23.21 | 16.82 | 30.03 | 24.50 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.67 | 3.85 | 3.54 | 2.01 | 1.93 |
Based on the provided data for Tidewater Inc, let's analyze the activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently a company is managing its inventory. Tidewater Inc's inventory turnover has shown fluctuation over the years, with values of 24.50, 30.03, 16.82, 23.21, and 27.37 for the years 2020, 2021, 2022, 2023, and 2024 respectively. A higher ratio generally indicates better inventory management. The company experienced a peak in inventory turnover in 2021 but then saw a decrease in 2022 before rebounding in 2024. This suggests improvements in inventory management efficiency over the years.
2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. Unfortunately, the data provided does not include any information for receivables turnover for the years 2020 through 2024. Without this data, it is challenging to assess Tidewater Inc's effectiveness in collecting receivables.
3. Payables Turnover:
- The payables turnover ratio evaluates how effectively a company is paying its suppliers. Similar to receivables turnover, there is no data provided for payables turnover for the years 2020 through 2024. Without this information, it is difficult to assess Tidewater Inc's payment practices and relationship with suppliers.
4. Working Capital Turnover:
- Working capital turnover shows how efficiently a company is utilizing its working capital to generate sales. Tidewater Inc's working capital turnover has improved steadily over the years, with values of 1.93, 2.01, 3.54, 3.85, and 3.67 for the years 2020, 2021, 2022, 2023, and 2024 respectively. An increasing ratio generally indicates effective utilization of working capital to support business operations and drive sales growth.
In conclusion, Tidewater Inc has shown fluctuations in its inventory turnover, with a significant improvement in working capital turnover over the years. However, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's efficiency in managing these aspects of its operations.
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 | 13.33 | 15.73 | 21.70 | 12.15 | 14.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities in generating sales. Let's analyze Tidewater Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- Tidewater Inc's DOH fluctuated over the past years, ranging from a low of 12.15 days in 2021 to a high of 21.70 days in 2022.
- A lower DOH indicates that Tidewater Inc is able to sell its inventory quickly, which can lead to lower carrying costs and potential for higher turnover.
- The decrease in 2023 (from 21.70 days to 15.73 days) suggests an improvement in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Tidewater Inc's DSO. DSO is typically used to assess how quickly a company collects its outstanding receivables from its customers.
3. Number of Days of Payables:
- The data does not include information on Tidewater Inc's number of days of payables. This ratio measures the number of days it takes a company to pay its suppliers or creditors.
Overall, Tidewater Inc's fluctuating DOH indicates variations in inventory management efficiency over the years. The absence of data on DSO and days of payables limits a comprehensive analysis of Tidewater Inc's overall working capital management and efficiency in managing its receivables and payables. Further data on these ratios would be necessary to provide a more holistic view of Tidewater Inc's activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.81 | 0.54 | 0.51 |
| Total asset turnover | 0.65 | 0.49 | 0.50 | 0.34 | 0.32 |
The Fixed Asset Turnover ratio for Tidewater Inc has shown a gradual improvement over the years, from 0.51 in 2020 to 0.54 in 2021, and a significant increase to 0.81 in 2022. However, the data for 2023 and 2024 are not available.
This indicates that Tidewater Inc has become more efficient in generating revenue from its fixed assets over the period analyzed. The increasing trend suggests that the company is utilizing its fixed assets more effectively to generate sales, which could be a positive sign for investors and creditors.
On the other hand, the Total Asset Turnover ratio has also shown an increasing trend from 0.32 in 2020 to 0.65 in 2024. This suggests that Tidewater Inc is generating more revenue relative to its total assets, which indicates improved efficiency in asset utilization over the years.
Overall, the improving trends in both the Fixed Asset Turnover and Total Asset Turnover ratios reflect positively on Tidewater Inc's long-term asset management efficiency and effectiveness in generating sales from its assets.