Werner Enterprises Inc (WERN)

Short-term

Turnover ratios

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

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Werner Enterprises Inc's inventory turnover has fluctuated over the quarters, indicating variations in how efficiently the company manages its inventory. The ratio has generally been high, peaking at 249.52 in March 2020 and gradually declining to 160.08 in December 2023. However, it increased again to 196.54 in December 2024. A high inventory turnover ratio suggests that Werner Enterprises is effectively managing its inventory levels.

2. Receivables Turnover: Unfortunately, there is no data available for receivables turnover, which measures how quickly a company collects its accounts receivable. Without this information, we cannot assess how efficiently Werner Enterprises is collecting payments from its customers.

3. Payables Turnover: Similarly, there is no data provided for payables turnover, which reflects how quickly a company pays its suppliers. This ratio helps in understanding the payment terms and cash flow management of the company, but without the data, we cannot comment on Werner Enterprises' payables turnover.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales. Werner Enterprises Inc's working capital turnover varied throughout the quarters, showing fluctuations in its operational efficiency. The ratio ranged from 6.01 in June 2021 to 16.37 in September 2024. A higher ratio suggests that the company is effectively using its working capital to support its operations and generate revenue.

In conclusion, while Werner Enterprises Inc appears to have a relatively efficient management of inventory and working capital based on the data provided, a complete analysis of its receivables and payables turnover ratios is not possible due to the missing information. It would be beneficial to have a more detailed picture of the company's efficiency in collecting receivables and managing payables for a comprehensive assessment of its overall activity performance.

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Average number of days

The activity ratios of Werner Enterprises Inc provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): This ratio measures how quickly inventory is sold or used during a specific period. Werner's DOH has shown a slight upward trend from 1.46 days on March 31, 2020, to 1.86 days on December 31, 2024. A lower DOH indicates efficient inventory management, and the company has generally maintained a low DOH over the years, suggesting effective inventory turnover.

2. Days of Sales Outstanding (DSO): DSO indicates the average number of days it takes for the company to collect its accounts receivable. The data provided does not include DSO figures, which might suggest that the company may not be tracking this metric or its accounts receivable turnover is not significant enough to warrant analysis.

3. Number of Days of Payables: The absence of data for the number of days of payables implies that figures for this metric are not available. Days of payables outstanding would have provided information on how long it takes the company to pay its suppliers. Monitoring this ratio is important for managing cash flow and vendor relationships.

In conclusion, based on the available data, Werner Enterprises Inc appears to have efficient inventory management with a low DOH, but further insights into accounts receivable and payables turnover are needed for a comprehensive analysis of the company's activity ratios.

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Long-term

Werner Enterprises Inc's Fixed Asset Turnover ratio has shown a fluctuating trend over the last few years, starting at 1.66 in March 2020 and gradually increasing to a peak of 1.86 in September 2022, before decreasing to 1.71 in June 2023. This ratio measures the efficiency of the company in generating revenue from its fixed assets. The general trend of the Fixed Asset Turnover ratio indicates that the company has been effective in utilizing its fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio, which measures the company's ability to generate sales from its total assets, has been on a declining trend for Werner Enterprises Inc. Starting at 1.18 in March 2020, the ratio decreased to 0.99 by December 2024. This decline suggests that the company may not be effectively utilizing its total assets to generate revenue.

Overall, when comparing the Fixed Asset Turnover and Total Asset Turnover ratios, it appears that while Werner Enterprises Inc has been relatively efficient in utilizing its fixed assets to generate revenue, there may be room for improvement in terms of generating sales from its total assets. Efficient asset utilization is crucial for a company's financial performance and profitability, and thus, it may be beneficial for Werner Enterprises Inc to focus on optimizing its total asset turnover in order to enhance overall performance.