Verra Mobility Corp (VRRM)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 15.65 12.65 13.08 13.89 13.97 14.75 15.17 14.97 17.66 3.34 3.06 4.23 872.19 7.65 9.60 7.41 201.18 12.22 13.25 153.02
Receivables turnover 0.44 0.44 0.46 0.45 0.49 0.41 0.37 0.29 0.21 0.66 0.86 1.30 23.09 2.38 2.91 3.36 3.54 3.08 3.13 3.41
Payables turnover 3.57 2.81 3.30 3.68 3.38 3.82 3.63 3.67 3.16 2.40 2.18 2.43 2.86 3.98 5.08 4.85 3.63 6.11 6.23 4.99
Working capital turnover 0.46 0.48 0.28 0.59 0.54 0.54 0.42 0.29 0.23 0.52 0.65 0.65 1.41 1.56 1.95 2.19 2.40 1.93 2.40 2.88

Activity ratios provide insight into how effectively a company is managing its assets and liabilities. Let's analyze the activity ratios of Verra Mobility Corp based on the provided data:

1. Inventory Turnover: Verra Mobility Corp's inventory turnover has remained fairly stable over the quarters, ranging from 2.10 to 2.97. This indicates that the company is efficiently managing its inventory by selling and replenishing stock at a moderate pace.

2. Receivables Turnover: The receivables turnover ratio indicates how quickly the company collects outstanding payments from customers. Verra Mobility Corp's receivables turnover has been consistent, hovering around 3.30-3.60. This suggests that the company is effective in collecting payments from customers within a reasonable timeframe.

3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. Verra Mobility Corp's payables turnover has shown some fluctuations but generally stayed within the range of 0.47 to 0.77. A lower ratio indicates that the company takes longer to pay its suppliers.

4. Working Capital Turnover: This ratio measures how efficiently a company generates revenue from its working capital. Verra Mobility Corp's working capital turnover has varied significantly, with values ranging from 2.16 to 4.66. A higher turnover indicates that the company is generating more revenue from its working capital.

Overall, Verra Mobility Corp's activity ratios suggest that the company is effectively managing its assets and liabilities to support its operations. However, fluctuations in some ratios indicate the need for ongoing monitoring and management of working capital and payables to maintain financial efficiency.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 23.32 28.86 27.91 26.28 26.12 24.74 24.05 24.38 20.67 109.32 119.30 86.23 0.42 47.69 38.00 49.27 1.81 29.86 27.55 2.39
Days of sales outstanding (DSO) days 827.79 823.95 791.72 805.03 745.97 894.23 979.25 1,276.45 1,735.51 554.66 425.47 281.19 15.81 153.25 125.63 108.65 103.04 118.45 116.43 107.01
Number of days of payables days 102.21 129.88 110.58 99.25 108.06 95.45 100.44 99.49 115.46 152.00 167.31 150.41 127.80 91.77 71.85 75.23 100.56 59.75 58.61 73.12

Days of Inventory on Hand (DOH) for Verra Mobility Corp have shown fluctuations over the past eight quarters, ranging from a low of 122.88 days in Q3 2022 to a high of 173.67 days in Q3 2023. This ratio measures the average number of days it takes for the company to sell its inventory, indicating how efficiently inventory is managed. Generally, a lower DOH is preferred as it suggests faster turnover of inventory.

Days of Sales Outstanding (DSO) have also varied over the quarters, with a low of 95.76 days in Q4 2022 and a high of 122.26 days in Q1 2022. DSO reflects the average number of days it takes for the company to collect revenue after a sale, indicating the efficiency of the company in collecting accounts receivable. A lower DSO is usually more favorable as it implies quicker collection of cash from customers.

The Number of Days of Payables, which reflects how long it takes for the company to pay its suppliers, has also fluctuated over the quarters. The range for Verra Mobility Corp's payables days has been between 474.03 days in Q3 2022 and 781.64 days in Q3 2023. A longer payment period can indicate an ability to use suppliers' funds to finance operations but may also strain relationships with suppliers if too extended.

Analyzing these activity ratios together can provide insights into Verra Mobility Corp's efficiency in managing inventory, collecting receivables, and paying its suppliers, which are crucial aspects of its working capital management and overall operational effectiveness.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 0.84 0.87 0.87 0.86 0.87 0.81 0.75 0.61 0.42 1.39 2.17 3.98 5.28 5.12 5.44 5.76 5.56 5.49 5.70 5.30
Total asset turnover 0.06 0.06 0.05 0.06 0.05 0.05 0.04 0.03 0.02 0.09 0.13 0.18 0.27 0.27 0.30 0.31 0.29 0.28 0.28 0.28

Verra Mobility Corp's long-term activity ratios provide insight into how effectively the company is utilizing its assets to generate revenue.

The fixed asset turnover ratio measures the company's ability to generate sales revenue from its investments in fixed assets. Verra Mobility Corp's fixed asset turnover ratio has remained relatively stable over the past eight quarters, with a range between 5.50 and 5.84. This indicates that the company is efficiently utilizing its long-term assets, such as property, plant, and equipment, to generate sales.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales revenue from all its assets, both long-term and short-term. Verra Mobility Corp's total asset turnover ratio has shown some fluctuations, ranging from 0.35 to 0.46 over the same period. This suggests that the company's overall asset utilization efficiency has varied, with some quarters being more effective than others in generating sales from its total asset base.

Overall, Verra Mobility Corp's fixed asset turnover indicates a consistent and efficient use of long-term assets to generate revenue, while the total asset turnover ratio shows some variability in the company's ability to generate sales from all its assets. Investors and stakeholders should closely monitor these ratios to assess the company's operational efficiency and asset utilization trends over time.