Vistra Energy Corp (VST)

Short-term

Turnover ratios

The activity ratios for Vistra Energy Corp provide insights into the company's operational efficiency and effectiveness in managing its assets and working capital.

1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company is selling its inventory. Vistra Energy Corp's inventory turnover ratios have fluctuated over the reported periods, with values ranging from a low of 9.10 to a high of 22.75. Generally, higher inventory turnover ratios indicate better efficiency in managing inventory levels and converting them into sales.

2. Receivables Turnover: Unfortunately, data on receivables turnover is not available, preventing us from evaluating how quickly the company is collecting on its accounts receivable. A higher receivables turnover ratio would typically be favorable as it indicates faster collection of outstanding payments.

3. Payables Turnover: Similarly, information on payables turnover is missing, making it challenging to assess how long the company takes to pay its suppliers. A higher payables turnover ratio suggests a shorter payment period to suppliers.

4. Working Capital Turnover: The working capital turnover ratio indicates how effectively the company is utilizing its working capital to generate revenue. Vistra Energy Corp's working capital turnover ratios have varied over the periods reported, with values reaching as high as 31.49 and as low as 5.92. A higher working capital turnover ratio usually implies that the company is efficiently using its working capital to drive sales.

In conclusion, while Vistra Energy Corp demonstrates strong inventory turnover and working capital turnover ratios, the lack of data on receivables turnover and payables turnover limits a comprehensive analysis of the company's overall activity performance.

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Average number of days

Based on the provided data for Vistra Energy Corp, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days on average a company holds its inventory before selling it.
- Vistra Energy's DOH has shown some fluctuations over the years, ranging from a low of 16.04 days to a high of 40.11 days.
- A decreasing trend in recent periods indicates the company is selling inventory more quickly.

2. Days of Sales Outstanding (DSO):
- DSO ratio indicates the average number of days it takes for a company to collect payment after a sale.
- The data provided does not include information on DSO, suggesting this ratio might not be monitored or calculated by the company.

3. Number of Days of Payables:
- The number of days of payables ratio shows the average number of days it takes for a company to pay its suppliers.
- Similar to DSO, there is no data provided for the number of days of payables, indicating a lack of information on how quickly the company pays its suppliers.

Overall, the analysis of Vistra Energy's activity ratios indicates efficient management of inventory levels, but the lack of data on DSO and payables limits a comprehensive assessment of the company's efficiency in collecting receivables and managing payables.

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Long-term

The fixed asset turnover ratio of Vistra Energy Corp has shown a fluctuating trend over the years, starting at 0.86 in March 2020, slightly decreasing to 0.83 in June 2020, and then gradually increasing to reach its peak at 1.33 in June 2023. This ratio measures the efficiency of the company in generating revenue from its fixed assets, such as property, plant, and equipment. The increasing trend indicates that Vistra Energy Corp is utilizing its fixed assets more effectively to generate sales revenue.

On the other hand, the total asset turnover ratio of the company has been more volatile, with a noticeable decline from 0.44 in March 2020 to 0.29 in June 2022, before rebounding to 0.46 by December 2024. This ratio reflects the company's ability to generate sales from all its assets, both fixed and current. The fluctuation in this ratio suggests varying levels of efficiency in asset utilization over the years.

Overall, the increasing trend in fixed asset turnover indicates improved efficiency in utilizing fixed assets to generate revenue, while the fluctuating total asset turnover ratio suggests some inconsistency in the overall asset utilization efficiency of Vistra Energy Corp.