Vistra Energy Corp (VST)

Short-term

Turnover ratios

The activity ratios of Vistra Corp provide insight into the efficiency of the company's operations over the past five years.

Firstly, the inventory turnover ratio indicates how effectively the company is managing its inventory. Vistra Corp's inventory turnover has fluctuated over the years, with a peak in 2022 at 18.25 and a dip in 2020 at 10.05. This suggests that in 2022, the company was able to sell its inventory more frequently within the year, potentially reducing carrying costs and improving cash flow.

Secondly, the receivables turnover ratio reflects how quickly the company collects its accounts receivable. Vistra Corp's receivables turnover remained relatively stable over the years, ranging from 6.58 to 8.80. This indicates that the company has been consistent in converting its credit sales into cash, maintaining a healthy collection process.

Thirdly, the payables turnover ratio measures how efficiently the company pays its suppliers. Vistra Corp's payables turnover has also shown steadiness, with values ranging from 5.88 to 6.68. This implies that the company has been managing its payments to suppliers effectively, maintaining good relationships.

Lastly, the working capital turnover ratio gives an indication of how efficiently the company is utilizing its working capital to generate sales. Vistra Corp's working capital turnover has shown significant variation over the years, from a high of 29.12 in 2020 to 5.92 in 2021. This suggests that the company's ability to generate sales using its current assets and liabilities fluctuated, possibly due to changes in operational efficiency or business strategy.

Overall, Vistra Corp's activity ratios reflect a mix of operational efficiency and stability in managing inventory, accounts receivable, and accounts payable. The fluctuations in the working capital turnover ratio may warrant further investigation into the company's working capital management practices.

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Average number of days

To assess Vistra Corp's activity ratios, we examine the days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables.

DOH measures how long a company takes to sell its inventory. Vistra Corp's DOH has fluctuated over the years, ranging from 20.00 days in 2022 to 36.33 days in 2020. In 2023, the DOH increased to 35.74 days, indicating a slightly slower rate of inventory turnover compared to the previous year.

DSO reflects the average number of days it takes for the company to collect its accounts receivable. Vistra Corp's DSO has been relatively stable, with the lowest being 40.80 days in 2020 and the highest at 55.46 days in 2022. In 2023, the DSO decreased to 41.49 days, suggesting an improvement in the collection of accounts receivable.

The number of days of payables indicates how long it takes for the company to pay its suppliers. Vistra Corp's payables period has varied, with the lowest recorded at 54.60 days in 2022 and the highest at 62.08 days in 2020. In 2023, the number of days of payables increased to 55.40 days, which may imply a slightly longer payment period to suppliers.

Overall, Vistra Corp's activity ratios show some fluctuations in the efficiency of its inventory management, receivables collection, and payables payment over the years. It is important for the company to monitor and manage these ratios to ensure optimal working capital management and operational efficiency.

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Long-term

The fixed asset turnover ratio for Vistra Corp has shown an increasing trend over the past five years, indicating that the company is generating more revenue from its fixed assets. In 2023, the ratio stood at 1.19, compared to 1.09 in 2022 and 0.85 in 2019. This improvement suggests that Vistra Corp is utilizing its fixed assets more efficiently to drive sales.

On the other hand, the total asset turnover ratio fluctuated during the same period but generally remained relatively stable. The ratio was 0.45 in 2023, which is slightly higher compared to 0.42 in 2022 and 0.44 in 2019. This indicates that Vistra Corp is generating $0.45 in sales for every $1 of total assets in 2023.

Overall, while the company's fixed asset turnover has shown a positive trajectory, the total asset turnover has been consistent. This suggests that Vistra Corp is effectively managing its fixed assets to generate revenue, but there may be opportunities to further optimize the utilization of its total assets to enhance overall efficiency and profitability.