Tidewater Inc (TDW)

Short-term

Turnover ratios

Based on the activity ratios provided for Tidewater Inc, we can analyze the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
The inventory turnover ratio measures how efficiently Tidewater Inc is managing its inventory. A higher ratio indicates that the company is selling its inventory quickly. Tidewater's inventory turnover has shown fluctuations over the analysis period, ranging from a low of 16.82 to a high of 33.61. The overall trend indicates an improvement in inventory turnover efficiency from 2020 to 2024, with a notable increase seen in recent quarters.

2. Receivables Turnover:
The lack of data for Tidewater's receivables turnover suggests that detailed analysis of the company's accounts receivable management is unavailable. Receivables turnover ratio would typically assess how quickly the company collects outstanding payments from customers.

3. Payables Turnover:
Similar to receivables turnover, the absence of data for payables turnover prevents us from evaluating Tidewater's payables management efficiency. Payables turnover ratio would typically measure how well the company is managing its accounts payable by paying its suppliers within a certain period.

4. Working Capital Turnover:
The working capital turnover ratio indicates how efficiently Tidewater is utilizing its working capital to generate sales. A higher ratio signifies that the company is effectively utilizing its resources to generate revenues. The working capital turnover ratio has shown fluctuations over the period under review, with a general increasing trend. This suggests that Tidewater has been improving its efficiency in generating sales based on its working capital.

In conclusion, while Tidewater Inc has shown improvements in managing its inventory and working capital turnover ratios over the years, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

Based on the provided data on Tidewater Inc's activity ratios, let's analyze the information:

Days of Inventory on Hand (DOH):
- Tidewater Inc's DOH has shown fluctuations over the years, ranging from a low of 10.86 days on June 30, 2024, to a high of 21.70 days on December 31, 2022.
- Generally, a decreasing trend in DOH is positive as it indicates fewer days required to sell the inventory, which can lead to improved liquidity and efficiency.
- Tidewater Inc should closely monitor its inventory management practices to ensure optimal levels are maintained to support operations without tying up excessive capital.

Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include information on Tidewater Inc's DSO, which is crucial for assessing the efficiency of the company's accounts receivable management.
- DSO measures the average number of days it takes for a company to collect revenue after a sale, and a lower DSO is generally favorable as it indicates faster collection of receivables.

Number of Days of Payables:
- Similarly, data on Tidewater Inc's number of days of payables is not available, which is vital for evaluating how long the company takes to pay its suppliers.
- The number of days of payables impacts the company's working capital management and cash flow, with a longer period indicating a more extended time to pay suppliers, which can affect relationships and potentially cash flow.

In conclusion, while Tidewater Inc's inventory management appears to have some variations, further data on DSO and number of days of payables would provide a more comprehensive view of the company's overall efficiency in managing its working capital.

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Long-term

Tidewater Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures the company's ability to generate sales from its investments in fixed assets. Tidewater Inc's fixed asset turnover ratio increased steadily from March 2020 to June 2023, indicating improved efficiency in utilizing its fixed assets. The ratio peaked at 1.00 in June 2023, which suggests that the company was generating $1.00 in sales for every dollar invested in fixed assets. However, the ratio decreased in the subsequent periods, dropping to 0.66 in September 2023. The absence of data from December 2023 onwards makes it challenging to assess the trend accurately. Overall, the fluctuation in the fixed asset turnover ratio signals varying levels of efficiency in asset utilization during the period under review.

2. Total Asset Turnover: This ratio evaluates the company's ability to generate revenue relative to its total assets. Tidewater Inc's total asset turnover ratio experienced fluctuations over the analyzed period. The ratio remained relatively stable between March 2020 and March 2022, hovering around 0.31 to 0.37. Subsequently, there was a notable increase in the ratio, reaching 0.59 in June 2023, indicating improved asset utilization. The ratio declined slightly in the following periods but remained relatively high. The upward trend in the total asset turnover ratio reflects an enhancement in the company's efficiency in generating sales from its total asset base.

In conclusion, the analysis of Tidewater Inc's long-term activity ratios suggests mixed efficiency in managing its fixed assets and total assets. The company demonstrated improvements in asset turnover during certain periods, signifying enhanced operational performance. Nonetheless, the fluctuations in these ratios also indicate variability in asset utilization efficiency, highlighting the need for continuous monitoring and optimization of asset management strategies.