Tidewater Inc (TDW)

Short-term

Turnover ratios

Inventory turnover ratios for Tidewater Inc have shown a consistent trend of improvement over the past few quarters, indicating that the company is efficiently managing its inventory levels. The ratio has increased from 21.93 in December 2019 to 37.20 in June 2024, indicating that Tidewater is selling its inventory more frequently.

Receivables turnover data is not available for most quarters, but the figures for some quarters show a significant increase, suggesting that the company is collecting its accounts receivable at a faster rate. This could indicate improved credit policies or effective collection efforts by Tidewater.

The payables turnover ratio has been fluctuating but generally trending upwards, from 10.05 in September 2019 to 16.48 in June 2024. This signifies that Tidewater is paying its suppliers more efficiently.

The working capital turnover ratio has also shown variability, with some quarters indicating a strong performance in utilizing working capital to generate sales, while others showing a lower efficiency level. The ratio fluctuated from 0.99 in December 2020 to 4.00 in June 2024.

Overall, Tidewater Inc's activity ratios reflect a mixed performance, with improvements in inventory turnover and payables turnover, a fluctuating working capital turnover ratio, and limited information available for receivables turnover.

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Average number of days

Tidewater Inc's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the company's efficiency in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates the number of days it takes for Tidewater Inc to sell its inventory. A lower DOH is preferable as it implies faster inventory turnover.
- Tidewater's DOH has shown some fluctuations over the past eight quarters, ranging from 9.81 days to 17.95 days. The recent DOH of 9.81 days suggests efficient management of inventory in the current quarter.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes the company to collect payment after a sale is made. A lower DSO indicates faster collection of receivables, which is favorable.
- Tidewater Inc has experienced significant fluctuations in DSO over the analyzed period, from as high as 97.30 days to as low as 1.25 days. The absence of data for some quarters indicates possible changes in reporting practices or the company's credit policies.

3. Number of Days of Payables:
- This ratio measures the average number of days the company takes to pay its suppliers. A higher number of days indicates that the company is taking longer to settle its payables.
- Tidewater's payables management has shown variability, with days ranging from 8.64 days to 36.32 days. The payables period has generally been under 30 days, indicating a relatively prompt payment to suppliers.

In conclusion, Tidewater Inc demonstrates good efficiency in managing inventory and payables, but there is room for improvement in collecting receivables promptly. It is essential for the company to maintain a balance between these elements to enhance overall liquidity and operational efficiency. The management should continue to monitor and optimize these activity ratios to support sustainable business operations.

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Long-term

The fixed asset turnover ratio for Tidewater Inc has shown fluctuation over the periods provided. The ratio was highest at 0.98 in Jun 2020, indicating that the company generated $0.98 in revenue for every $1 of fixed assets during that period. However, it decreased to 0.44 by Mar 2021 before gradually increasing to 0.74 by Dec 2023. This trend suggests that the company's efficiency in utilizing fixed assets to generate revenue improved in recent quarters.

On the other hand, the total asset turnover ratio depicts a similar pattern of fluctuation but at a lower level compared to the fixed asset turnover. The ratio was highest at 0.59 in Jun 2020, showing that Tidewater Inc generated $0.59 in revenue for every $1 of total assets during that period. Despite some variations, the ratio has generally trended upwards over time, reaching 0.47 by Dec 2023. This indicates that the company has been more effective in utilizing its total assets to generate revenue in recent periods.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests an improvement in Tidewater Inc's efficiency in utilizing assets to generate revenue, which is a positive indication of the company's operational performance and potential for future growth.