Cactus Inc (WHD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.06 | 3.36 | 2.76 | 2.65 | 2.71 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.90 | 2.88 | 1.28 | 1.03 | 0.93 |
Based on the provided data for Cactus Inc's activity ratios:
1. Inventory Turnover: This ratio measures how efficiently Cactus Inc manages its inventory. The trend shows a slight fluctuation in inventory turnover over the years, increasing from 2.71 in 2020 to 3.06 in 2024, with a peak of 3.36 in 2023. A higher inventory turnover indicates that the company is selling its inventory more quickly, which is generally favorable for cash flow and profitability.
2. Receivables Turnover: There is no data available for receivables turnover, which makes it difficult to assess how effectively Cactus Inc is collecting on its credit sales. Without this information, it is challenging to determine the efficiency of the company in converting credit sales into cash.
3. Payables Turnover: Similar to receivables turnover, there is no data provided for payables turnover. This ratio helps in understanding how efficiently the company pays its suppliers and manages its trade payables. Without this information, it is hard to evaluate Cactus Inc's payment practices.
4. Working Capital Turnover: This ratio indicates how effectively Cactus Inc utilizes its working capital to generate sales. The trend shows an increase in working capital turnover from 0.93 in 2020 to 1.90 in 2024, with a significant peak of 2.88 in 2023. A higher working capital turnover suggests that the company is efficiently using its resources to drive revenue growth.
In summary, Cactus Inc has shown improvements in inventory turnover and working capital turnover over the years, indicating better inventory management and utilization of working capital. However, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall efficiency in managing its accounts receivable and accounts payable.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 119.38 | 108.67 | 132.02 | 137.90 | 134.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Cactus Inc's activity ratios provide insights into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH):
- Cactus Inc's average DOH has shown a slight increase from 134.76 days in 2020 to 137.90 days in 2021, then decreased to 132.02 days in 2022, and further dropped to 108.67 days in 2023, before increasing to 119.38 days in 2024.
- A decreasing trend in DOH indicates that the company is managing its inventory more efficiently, holding inventory for a shorter period before selling it.
2. Days of Sales Outstanding (DSO):
- The DSO data is not available for analysis. DSO helps in evaluating how quickly a company collects its outstanding receivables. Absence of this data limits the assessment of Cactus Inc's accounts receivable management.
3. Number of Days of Payables:
- Similarly, the data for the number of days of payables is not provided, which impacts the ability to evaluate how long Cactus Inc takes to pay its suppliers.
- Efficient management of payables can impact cash flow and liquidity.
In conclusion, while Cactus Inc appears to be improving its inventory turnover based on the DOH ratio, the absence of data for DSO and payables hinders a comprehensive analysis of the company's overall activity ratios. Efficient management of these ratios is crucial for optimizing working capital and maintaining healthy cash flows.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.49 | 2.89 | 2.44 |
| Total asset turnover | 0.65 | 0.72 | 0.62 | 0.45 | 0.43 |
The Fixed Asset Turnover ratio for Cactus Inc has shown a positive trend over the years, increasing from 2.44 in 2020 to 4.49 in 2022. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting improved operational efficiency and utilization of its fixed assets.
On the other hand, the Total Asset Turnover ratio has also displayed an upward trajectory, rising from 0.43 in 2020 to 0.65 in 2024. This suggests that Cactus Inc has been able to generate more sales relative to its total assets, signaling effective asset management and utilization to drive revenue growth.
Overall, both ratios demonstrate positive trends in Cactus Inc's long-term activity efficiency, highlighting the company's ability to effectively manage and utilize its assets to drive sales and improve overall operational performance.