WEC Energy Group Inc (WEC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.24 | 3.91 | 4.87 | 5.90 | 4.50 | 3.71 | 5.04 | 6.15 | 4.15 | 3.70 | 4.71 | 5.39 | 3.41 | 3.17 | 3.67 | 4.26 | 3.73 | 3.72 | 4.48 | 5.67 |
| Receivables turnover | 5.92 | 7.43 | 7.06 | 5.38 | 5.28 | 6.99 | 6.21 | 5.22 | 5.52 | 7.29 | 6.72 | 5.71 | 6.02 | 7.96 | 7.53 | 6.16 | 6.39 | — | — | — |
| Payables turnover | 3.96 | 4.73 | 5.78 | 6.94 | 3.99 | 3.77 | 3.81 | 5.33 | 3.55 | 3.71 | 4.25 | 4.70 | 2.89 | 3.46 | 3.73 | 4.43 | 3.22 | 4.02 | 4.37 | 4.72 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The activity ratios for WEC Energy Group Inc provide insights into the efficiency of the company's operations in managing its inventory, receivables, and payables.
1. Inventory turnover: This ratio indicates how many times the company's inventory is sold and replaced within a certain period. A higher turnover ratio signifies that the company is efficiently managing its inventory levels. WEC Energy Group's inventory turnover has shown a fluctuating trend over the past few quarters, with Q2 2023 and Q1 2023 exhibiting the highest turnover ratios at 6.43 and 8.19, respectively.
2. Receivables turnover: This ratio measures how efficiently the company is collecting payments from its credit customers. A higher ratio suggests that the company is effectively managing its accounts receivable. WEC Energy Group's receivables turnover has also varied, with Q3 2023 showing the highest turnover at 7.43.
3. Payables turnover: This ratio reflects how quickly the company pays its suppliers. A higher payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially benefiting from extended credit terms. WEC Energy Group's payables turnover has been relatively stable, with Q4 2022 and Q1 2022 displaying the lowest turnover ratios at 3.64 and 4.94, respectively.
4. Working capital turnover: Unfortunately, the data for working capital turnover is not provided in the table, making it impossible to analyze the company's efficiency in managing its working capital over time.
Overall, WEC Energy Group's activity ratios suggest varying levels of efficiency in inventory management, receivables collection, and payables payment. It is important for the company to monitor these ratios consistently to ensure optimal operational performance and cash flow management.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 112.57 | 93.43 | 74.91 | 61.87 | 81.17 | 98.36 | 72.40 | 59.38 | 88.02 | 98.54 | 77.43 | 67.70 | 106.92 | 115.09 | 99.34 | 85.64 | 97.98 | 98.12 | 81.40 | 64.34 |
| Days of sales outstanding (DSO) | days | 61.70 | 49.14 | 51.73 | 67.86 | 69.16 | 52.21 | 58.81 | 69.97 | 66.09 | 50.06 | 54.29 | 63.90 | 60.62 | 45.87 | 48.47 | 59.22 | 57.08 | — | — | — |
| Number of days of payables | days | 92.16 | 77.09 | 63.18 | 52.58 | 91.39 | 96.92 | 95.80 | 68.54 | 102.80 | 98.33 | 85.85 | 77.67 | 126.11 | 105.36 | 97.75 | 82.35 | 113.49 | 90.91 | 83.52 | 77.34 |
WEC Energy Group Inc's activity ratios provide insights into how efficiently the company manages its inventory, sales, and payables.
1. Days of inventory on hand (DOH) has been fluctuating over the quarters, ranging from a low of 39.26 days in Q1 2022 to a high of 88.67 days in Q4 2023. A decreasing trend in this ratio indicates an improvement in inventory management efficiency, while an increasing trend suggests potential inventory management challenges.
2. Days of sales outstanding (DSO) also show variability, with the number of days ranging from 49.14 days in Q3 2023 to 69.97 days in Q1 2022. A lower DSO indicates faster collection of accounts receivable, reflecting better credit policies or efficient collection efforts. WEC Energy Group Inc should focus on maintaining a lower DSO to improve cash flow.
3. The number of days of payables has also shown fluctuations, from 57.92 days in Q1 2023 to 103.54 days in Q3 2022. A lower number of days of payables suggests that the company is paying its suppliers more quickly, which may indicate strong supplier relationships. However, extending payment terms too much can strain these relationships.
In conclusion, WEC Energy Group Inc should monitor and manage its activity ratios closely to ensure optimal efficiency in managing inventory, sales, and payables, which can positively impact its cash flow and overall financial performance.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.28 | 0.29 | 0.30 | 0.32 | 0.33 | 0.32 | 0.33 | 0.31 | 0.31 | 0.30 | 0.30 | 0.30 | 0.28 | 0.30 | 0.30 | 0.30 | 0.32 | 0.33 | 0.34 | 0.35 |
| Total asset turnover | 0.20 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 |
The fixed asset turnover ratio for WEC Energy Group Inc has been relatively stable over the past eight quarters, ranging between 0.28 and 0.33. This indicates that the company generates approximately $0.28 to $0.33 in revenue for every dollar invested in fixed assets. A decreasing trend in fixed asset turnover may suggest inefficiencies in asset utilization or decreasing sales generated by fixed assets.
On the other hand, the total asset turnover ratio has also shown consistency, hovering around 0.20 to 0.23 over the same period. This metric reflects the company's ability to generate sales in relation to its total assets. A lower total asset turnover ratio compared to fixed asset turnover can indicate significant investments in non-operating assets such as cash, investments, or goodwill.
In summary, both the fixed asset turnover and total asset turnover ratios for WEC Energy Group Inc have been relatively stable over the analyzed period. However, monitoring these ratios over time can provide insight into the company's asset efficiency and overall operational performance.