Verra Mobility Corp (VRRM)

Short-term

Turnover ratios

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

1. Inventory Turnover:
- The inventory turnover ratio shows a fluctuating trend over the reported periods, ranging from a low of 0.65 in June 30, 2021, to a high of 7.35 in June 30, 2024.
- Generally, the inventory turnover ratio has been increasing in recent periods, reaching 5.58 in December 31, 2024, indicating a more efficient management of inventory compared to previous periods.

2. Receivables Turnover:
- The data does not provide information on receivables turnover, which may indicate that it is either not relevant or not calculated for Verra Mobility Corp.

3. Payables Turnover:
- Similarly, there is no data available for payables turnover, suggesting that the company's payables turnover ratio is not provided or may not be a significant metric for analysis in this context.

4. Working Capital Turnover:
- The working capital turnover ratio shows varying levels over the reported periods, with values ranging from 0.89 in March 31, 2021, to 4.64 in September 30, 2022.
- This ratio indicates how effectively the company is using its working capital to generate sales. The fluctuating trend suggests changes in efficiency in utilizing working capital over time.

In conclusion, while the inventory turnover and working capital turnover ratios provide insights into Verra Mobility Corp's inventory management and working capital efficiency, the lack of data on receivables and payables turnover limits a comprehensive analysis of the company's complete activity ratios.

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Average number of days

Based on the provided data for Verra Mobility Corp, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH for Verra Mobility Corp has seen significant fluctuations over the periods presented.
- The company started with a high DOH of 338.02 days on March 31, 2020, which decreased to 6.89 days by December 31, 2020, indicating a rapid turnover of inventory.
- However, the DOH increased sharply to 562.26 days on June 30, 2021, and has since fluctuated but appears to have stabilized around 100-200 days by the end of 2024.
- A lower DOH generally indicates better inventory management and efficiency in selling products more quickly.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the data for DSO is not provided, which prevents us from evaluating the efficiency of Verra Mobility Corp in collecting its accounts receivable.
- Typically, a lower DSO is preferred as it implies quicker cash flow conversion from sales.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is not available, limiting our ability to assess the company's payment practices.
- The number of days of payables provides insight into how long the company takes to pay its suppliers and manage its working capital effectively.

In conclusion, while we observed fluctuations in Verra Mobility Corp's inventory turnover over the years, the lack of data for DSO and the number of days of payables restricts a comprehensive analysis of the company's overall activity ratios.

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Long-term

The Fixed Asset Turnover ratio of Verra Mobility Corp has shown fluctuations over the years, ranging from a low of 3.22 in June 2021 to a high of 6.89 in September 2022. This ratio measures the efficiency with which the company utilizes its fixed assets to generate sales. Generally, a higher fixed asset turnover ratio indicates better asset utilization.

On the other hand, the Total Asset Turnover ratio of the company has also varied, with values ranging from 0.24 in March 2021 to 0.48 in June 2024. This ratio reflects how efficiently the company uses all its assets to generate revenue. A higher total asset turnover ratio suggests that the company is efficiently generating sales using its total assets.

Overall, Verra Mobility Corp's long-term activity ratios indicate fluctuations in asset utilization efficiency over time, emphasizing the importance of consistent monitoring and management of the company's fixed and total assets to optimize revenue generation.