Verra Mobility Corp (VRRM)

Short-term

Turnover ratios

The activity ratios of Verra Mobility Corp provide insight into how efficiently the company manages its operations and working capital.

1. Inventory Turnover:
- Verra Mobility Corp's inventory turnover has shown fluctuation over the past years, with a significant increase from 2020 to 2021, followed by a decline in 2024.
- The inventory turnover ratio measures the company's ability to sell inventory, and a higher ratio indicates better efficiency in managing inventory levels.
- Overall, Verra Mobility Corp improved its inventory turnover from 2020 to 2022 but experienced a decrease in efficiency by 2024.

2. Receivables Turnover:
- The data provided does not show figures for receivables turnover for any of the years, indicating a lack of information regarding how quickly the company collects its accounts receivable.
- Receivables turnover ratio would have reflected how well Verra Mobility Corp manages its accounts receivable and collects payments from customers.

3. Payables Turnover:
- Similar to receivables turnover, there is no data available for payables turnover for any of the years, making it difficult to assess how effectively the company manages its payables.
- Payables turnover ratio would have indicated how efficiently Verra Mobility Corp pays its suppliers and manages its short-term liabilities.

4. Working Capital Turnover:
- Verra Mobility Corp's working capital turnover has shown a positive trend over the years, indicating an improvement in the company's ability to generate revenue relative to its working capital.
- A higher working capital turnover ratio suggests efficient utilization of working capital to drive sales and revenue growth.
- The steady increase in the working capital turnover ratio from 2020 to 2024 reflects Verra Mobility Corp's effectiveness in utilizing its working capital to support its operations and business activities.

In conclusion, while Verra Mobility Corp has demonstrated improvements in certain activity ratios such as working capital turnover, the lack of data for receivables and payables turnovers limits a comprehensive analysis of the company's overall operational efficiency and management of liquidity.

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Average number of days

Based on the provided data for Verra Mobility Corp's activity ratios, we can see the following:

1. Days of Inventory on Hand (DOH):
- Verra Mobility Corp's inventory turnover improved from 261.83 days in 2020 to 125.59 days in 2021. This indicates that the company reduced the number of days it takes to sell its inventory, which is a positive sign of efficiency. However, the DOH increased in 2024 to 297.99 days, which may indicate potential issues with managing inventory levels.

2. Days of Sales Outstanding (DSO):
- DSO data is not available for any of the years provided, making it challenging to assess the efficiency of Verra Mobility Corp in collecting accounts receivable. Further data would be needed to analyze the company's accounts receivable management.

3. Number of Days of Payables:
- Similar to DSO, data on the number of days of payables is not provided for any of the years. This ratio helps in understanding how long a company takes to pay its suppliers, and without this data, it is challenging to evaluate Verra Mobility Corp's payables management.

In summary, while the information on inventory turnover shows improvements in efficiency, the lack of data on DSO and payables limits a comprehensive analysis of Verra Mobility Corp's overall activity ratios. It would be beneficial to have additional financial data to provide a more in-depth assessment of the company's working capital management.

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Long-term

Verra Mobility Corp's fixed asset turnover ratio has been showing a generally increasing trend over the years, starting at 5.60 in 2020 and reaching 6.76 in 2022. This indicates that the company is generating more revenue relative to its investment in fixed assets, such as property, plant, and equipment. The increasing ratio suggests that the company is utilizing its fixed assets more efficiently to generate sales, which is a positive sign for operational efficiency.

On the other hand, the total asset turnover ratio has also been increasing steadily over the years, from 0.29 in 2020 to 0.54 in 2024. This ratio measures how efficiently the company is utilizing all its assets to generate sales. The increasing trend indicates that Verra Mobility Corp is becoming more efficient in using its total assets to generate revenue.

Overall, both the fixed asset turnover and total asset turnover ratios for Verra Mobility Corp are showing an upward trend, indicating improved efficiency in utilizing assets to generate sales, which can be seen as a positive indicator of the company's operational performance and asset utilization.