Tegna Inc (TGNA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 104.41 | 99.43 | 60.01 |
| Receivables turnover | 4.32 | 4.62 | 4.27 | 4.83 | 3.52 |
| Payables turnover | 19.03 | 28.44 | 28.21 | 33.42 | 31.11 |
| Working capital turnover | 4.37 | 3.40 | 6.80 | 10.98 | 6.12 |
Inventory turnover ratios are not provided in the data table for TEGNA Inc.
Receivables turnover has shown a declining trend from 2019 to 2023, indicating that the company is taking longer to collect its accounts receivables.
Payables turnover has also decreased over the years, implying that the company is taking more time to pay its suppliers.
Working capital turnover has fluctuated over the years with a general decreasing trend. A lower working capital turnover indicates that TEGNA Inc is taking longer to generate revenue using its working capital.
Overall, the analysis of TEGNA Inc's activity ratios suggests inefficiencies in managing its receivables, payables, and working capital, which may require attention to improve the company's operational efficiency and liquidity management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 3.50 | 3.67 | 6.08 |
| Days of sales outstanding (DSO) | days | 84.48 | 78.97 | 85.58 | 75.58 | 103.57 |
| Number of days of payables | days | 19.18 | 12.83 | 12.94 | 10.92 | 11.73 |
The activity ratios of TEGNA Inc provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers over the past five years.
1. Days of Inventory on Hand (DOH): Unfortunately, specific data for Days of Inventory on Hand is not available in the table. DOH represents how long, on average, inventory is held before being sold. In general, a lower DOH indicates efficient inventory management, ensuring that inventory turnover is frequent and excess inventory is minimized.
2. Days of Sales Outstanding (DSO): The DSO metric shows the average number of days it takes for the company to collect payment from its customers after making a sale. TEGNA Inc's DSO has fluctuated over the past five years, with the highest being in 2019 at 95.46 days and the lowest in 2020 at 70.17 days. A decreasing trend in DSO is generally positive as it indicates faster collection of receivables, improving cash flow and liquidity.
3. Number of Days of Payables: This metric reveals the average number of days it takes for the company to pay its suppliers after the receipt of goods or services. TEGNA Inc has shown an increasing trend in the number of days of payables from 2019 to 2023, indicating a lengthening of the payment period to suppliers. While extending payables can optimize cash flow, it is essential to strike a balance to maintain strong supplier relationships.
In conclusion, TEGNA Inc has shown fluctuations in its Days Sales Outstanding and an increasing trend in the number of Days of Payables. Further improvement in managing receivables and payables efficiently could enhance the company's overall liquidity and working capital management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 6.06 | 6.79 | 6.00 | 5.80 | 4.36 |
| Total asset turnover | 0.39 | 0.42 | 0.41 | 0.40 | 0.30 |
The fixed asset turnover ratio for TEGNA Inc has shown a decreasing trend over the past five years, from 7.17 in 2022 to 6.44 in 2023. This indicates that the company is generating $6.44 in sales for every dollar invested in fixed assets, down from $7.17 the previous year. Although the ratio has fluctuated over the years, the values generally suggest efficient utilization of fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has remained relatively stable, ranging from 0.33 in 2019 to 0.45 in 2022 before dropping to 0.42 in 2023. This ratio signifies that TEGNA Inc is generating $0.42 in sales for every dollar invested in total assets. The stable nature of this ratio indicates consistent efficiency in utilizing all assets to generate revenue.
Overall, the company has been efficiently utilizing both fixed assets and total assets to generate sales, although there has been a slight decline in the fixed asset turnover ratio in the most recent year. Monitoring the trend over time can help identify any significant shifts in the company's asset utilization efficiency.