WEC Energy Group Inc (WEC)

Short-term

Turnover ratios

WEC Energy Group Inc's inventory turnover ratio has fluctuated over the years, ranging from a low of 6.52 to a high of 14.67. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which is generally positive as it reduces the risk of obsolescence and holding costs.

On the other hand, the receivables turnover ratio, payables turnover ratio, and working capital turnover ratio are not available for analysis. This lack of data may suggest that the company does not provide detailed information on these activity ratios or that these ratios are not applicable or relevant to WEC Energy Group Inc's operations.

Overall, based on the inventory turnover ratio, WEC Energy Group Inc appears to manage its inventory efficiently, but additional information on other activity ratios would provide a more comprehensive assessment of the company's overall working capital management and operational efficiency.

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Average number of days

Based on the data provided for WEC Energy Group Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- DOH indicates how many days, on average, a company holds inventory before selling it.
- WEC Energy Group's DOH has fluctuated over the periods, ranging from a low of 24.89 days to a high of 55.98 days.
- A decreasing trend in DOH indicates that the company is selling inventory faster, which may be a positive sign of efficiency in inventory management.
- However, a sudden increase in DOH could suggest potential inventory management challenges or slower sales.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes a company to collect payment after making a sale.
- The data provided does not include DSO figures, indicating that we cannot analyze the efficiency of WEC Energy Group in collecting receivables over time.
- Lower DSO values are typically desirable as they indicate faster cash conversion.

3. Number of Days of Payables:
- The data does not include information on the number of days of payables, which represents how long the company takes to pay its suppliers.
- Analyzing payables turnover can provide insights into the company's payment practices and liquidity management.
- A longer payables period may indicate favorable terms with suppliers, but it could also suggest potential cash flow challenges.

In conclusion, while we can comment on WEC Energy Group's inventory management based on the DOH data provided, the lack of information on DSO and payables turnover limits a comprehensive assessment of the company's overall activity ratios and working capital efficiency. It would be beneficial to have additional data to perform a more thorough analysis of WEC Energy Group's operations.

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Long-term

Long-term activity ratios provide insights into how effectively a company is utilizing its assets to generate sales revenue. In the case of WEC Energy Group Inc, the fixed asset turnover ratio has been relatively stable, ranging between 0.28 and 0.33 over the past few years. This indicates that the company generates approximately 0.28 to 0.33 in sales for every dollar invested in fixed assets, such as property, plant, and equipment.

On the other hand, the total asset turnover ratio, which measures how efficiently the company is using all its assets to generate revenue, has shown a slight increasing trend from 0.20 to 0.23, with some fluctuations. This suggests that WEC Energy Group Inc has been improving its overall asset utilization efficiency over time, generating more sales for each dollar of total assets deployed in the business.

Overall, while the fixed asset turnover ratio has remained relatively stable, the increasing trend in the total asset turnover ratio indicates that WEC Energy Group Inc is becoming more efficient in utilizing its assets to drive revenue growth.