Werner Enterprises Inc (WERN)

Short-term

Turnover ratios

Based on the provided data, let's analyze Werner Enterprises Inc's activity ratios:

1. Inventory Turnover:
- The inventory turnover metric indicates how efficiently a company manages its inventory.
- Werner's inventory turnover has shown fluctuations over the years, ranging from a low of 158.20 to a high of 202.55.
- The higher the inventory turnover, the better, as it suggests that the company is selling its inventory quickly.

2. Receivables Turnover:
- The receivables turnover ratio measures how effectively a company collects its outstanding receivables.
- Since the data provided shows "—" for all years, it suggests that information on receivables turnover is not available or not applicable for Werner Enterprises Inc.

3. Payables Turnover:
- The payables turnover ratio evaluates how efficiently a company pays its suppliers.
- Similarly, the data shows "—" for all years, indicating that information on payables turnover is not available or provided.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how effectively a company uses its working capital to generate revenue.
- Werner's working capital turnover has varied from 7.26 to 16.29 over the years. A higher ratio suggests that the company is efficiently utilizing its working capital to generate sales.

In summary, based on the data provided, Werner Enterprises Inc demonstrates strong efficiency in managing its inventory, working capital, but information on receivables and payables turnover is not available. Efficient inventory and working capital turnover ratios indicate effective working capital management and inventory control within the company.

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Average number of days

Based on the activity ratios provided for Werner Enterprises Inc, we can observe the following:

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days a company takes to turn its inventory into sales.
- Werner Enterprises Inc has shown fluctuations in its DOH over the years, ranging from as low as 1.80 days to as high as 2.31 days.
- A lower DOH indicates that the company is efficiently managing its inventory, as seen in the lower figures recorded in 2021 and 2024.

2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects the average number of days it takes a company to collect revenue after a sale has been made.
- The provided data shows that DSO figures are not available (denoted as "— days") for all the years, indicating that specific data for this metric may not be publicly disclosed or may not be applicable to Werner Enterprises Inc.

3. Number of Days of Payables:
- This ratio indicates the average number of days a company takes to pay its suppliers.
- Similar to DSO, the information for the number of days of payables is not available (denoted as "— days") for all the years, which may suggest that specific data for this metric is not disclosed or may not be significant for analyzing Werner Enterprises Inc's financial performance.

In summary, based on the available activity ratios, Werner Enterprises Inc appears to have effectively managed its inventory levels, but data for days of sales outstanding and number of days of payables is not provided, limiting a comprehensive analysis of the company's efficiency in collecting receivables and managing payables.

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Long-term

The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue.

For Werner Enterprises Inc, the trend in fixed asset turnover is generally positive, increasing from 1.54 in 2020 to 1.69 in 2021 and further to 1.76 in 2022. This suggests that the company is becoming more efficient in generating revenue from its fixed assets over this period.

However, there is missing data for 2023 and 2024, which makes it challenging to assess the continuous trend in fixed asset turnover beyond 2022.

In comparison, the total asset turnover ratio measures how effectively a company is generating revenue from all its assets, including both fixed and current assets.

Werner Enterprises Inc's total asset turnover ratio shows a slight decline over the period from 2020 to 2024, decreasing from 1.10 in 2020 to 0.99 in 2024. This indicates that the company is generating slightly less revenue in relation to its total assets in recent years.

Overall, the fixed asset turnover ratio indicates improving efficiency in utilizing fixed assets to generate revenue, while the total asset turnover ratio shows a slight decrease in revenue generation from all assets over the analyzed period.