Bristow Group Inc (VTOL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.70 | 0.06 | 3.40 | 4.38 | 2.21 |
| Receivables turnover | 6.23 | — | 658.44 | 453.10 | 83.08 |
| Payables turnover | 3.07 | 0.06 | 4.37 | 5.80 | — |
| Working capital turnover | 5.11 | 5.83 | 4.06 | 4.20 | 1.56 |
Activity ratios provide insights into how efficiently a company manages its resources and operates its business. Let's analyze Bristow Group Inc's activity ratios based on the data provided:
1. Inventory Turnover:
- Bristow Group Inc's inventory turnover has been erratic over the years, ranging from a low of 0.06 in December 2022 to a high of 4.38 in March 2021. The ratio improved significantly to 2.70 in December 2023, indicating that the company is now turning its inventory over more efficiently.
2. Receivables Turnover:
- Bristow Group Inc's receivables turnover has also varied significantly, with a remarkable spike to 658.44 in March 2022. This may signify a rapid collection of receivables during that period. However, the lack of data for December 2022 makes it challenging to assess the current trend accurately.
3. Payables Turnover:
- The payables turnover ratio for Bristow Group Inc has generally been stable, showing a slight decrease from 5.80 in March 2021 to 3.07 in December 2023. A lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could impact its working capital management.
4. Working Capital Turnover:
- Bristow Group Inc's working capital turnover demonstrates how effectively the company generates revenue relative to its working capital. The ratio has fluctuated over the years, with a notable increase from 1.56 in December 2019 to 5.11 in December 2023. This suggests an improvement in the company's ability to use its working capital efficiently to generate sales.
In conclusion, Bristow Group Inc has shown improvements in its inventory turnover and working capital turnover ratios, indicating enhanced operational efficiency. However, the significant fluctuations in receivables turnover and a slight decline in payables turnover warrant further monitoring to ensure effective management of working capital and overall operational performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 135.23 | 5,762.17 | 107.44 | 83.36 | 165.03 |
| Days of sales outstanding (DSO) | days | 58.63 | — | 0.55 | 0.81 | 4.39 |
| Number of days of payables | days | 119.01 | 6,305.70 | 83.53 | 62.89 | — |
Activity ratios measure how efficiently a company manages its assets and liabilities. Looking at the activity ratios of Bristow Group Inc over the past few years, we can see some noteworthy trends.
Days of Inventory on Hand (DOH) reflects how many days, on average, inventory is held before being sold. In 2023, the DOH drastically decreased to 135.23 days from an exceptionally high figure of 5,762.17 days in 2022, indicating a significant improvement in inventory management efficiency.
Days of Sales Outstanding (DSO) represents the average number of days it takes for the company to collect payment after a sale. There is missing data for 2022, but in 2023, the DSO increased to 58.63 days compared to previous years. This suggests that the company is taking longer to collect payments from its customers, which may impact cash flow.
Number of Days of Payables indicates the average number of days a company takes to pay its suppliers. In 2023, the days payable improved to 119.01 days compared to the abnormally high figure of 6,305.70 days in 2022. This indicates that the company is taking a more reasonable amount of time to pay its suppliers, which could be a positive sign for vendor relationships.
Overall, while there have been fluctuations in Bristow Group Inc's activity ratios over the years, it is evident that the company has made significant improvements in managing its inventory and payables more efficiently. However, the increasing days of sales outstanding in 2023 may indicate a need for closer monitoring of accounts receivable to improve cash flow.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.40 | 1.32 | 1.26 | 1.17 | 0.41 |
| Total asset turnover | 0.67 | 0.67 | 0.65 | 0.59 | 0.30 |
The fixed asset turnover ratio of Bristow Group Inc has shown a positive trend over the last five years, indicating that the company has been more efficient in utilizing its fixed assets to generate revenue. The ratio increased from 0.41 in 2019 to 1.40 in 2023, suggesting a significant improvement in the management of fixed assets.
However, the total asset turnover ratio has remained relatively stable around 0.67 over the same period. This indicates that while the company has been able to generate revenue more efficiently from its fixed assets, it has not been as successful in generating overall revenue from all its assets. This could be due to an increase in non-operating assets or a decrease in revenue generation from other assets.
Overall, the improvement in the fixed asset turnover ratio is a positive sign of operational efficiency for Bristow Group Inc, but there may be opportunities to further optimize the utilization of all assets to improve the total asset turnover ratio.