Cactus Inc (WHD)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2024 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
Inventory turnover 0.77 0.88 0.63 0.55 0.39 0.53 0.40 0.41 0.42 0.53 0.51 0.54 0.54 0.70 0.56 0.62 0.61 0.56 0.49 0.46
Receivables turnover 4.75 4.70 4.18 3.65 3.27 4.00 3.79 3.64 3.93 3.87 3.88 3.70 4.09 6.63 8.64 9.89 5.34 5.61 6.24 5.45
Payables turnover 2.39 2.20 1.96 1.80 1.61 1.57 1.03 1.06 1.12 1.25 1.19 1.43 2.18 2.53 3.15 4.21 1.79 1.43 1.33 1.08
Working capital turnover 2.67 2.87 3.21 2.86 2.27 1.29 1.27 1.17 1.13 1.03 0.94 0.81 0.73 0.93 1.16 1.46 1.76 1.93 2.10 2.27

Cactus Inc's inventory turnover ratio has shown some fluctuations over the past several quarters, ranging from a low of 0.39 to a high of 0.88. The ratio indicates the number of times inventory is sold and replaced during a specific period. A higher inventory turnover ratio is generally preferred as it signifies efficient management of inventory levels.

The receivables turnover ratio has been relatively stable, with values ranging from 3.27 to 9.89. This ratio reflects how quickly the company collects payments from its customers. A higher receivables turnover ratio indicates a faster collection of receivables, which is positive for cash flow and liquidity.

The payables turnover ratio for Cactus Inc has also varied, with values ranging from 1.03 to 4.21. This ratio indicates how quickly the company is paying its suppliers. A lower payables turnover ratio may suggest that the company is taking longer to pay its bills, which can sometimes be favorable for cash management but could also indicate potential liquidity issues.

The working capital turnover ratio has generally shown a decreasing trend, from 2.67 to 1.13. This ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher working capital turnover ratio indicates more effective utilization of resources.

Overall, Cactus Inc's activity ratios provide insights into the company's management of inventory, receivables, payables, and working capital. It is essential for the company to monitor these ratios regularly to ensure efficient operational performance and maintain healthy cash flow levels.

Average number of days

Mar 31, 2024 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
Days of inventory on hand (DOH) days 471.26 415.79 580.08 667.61 931.42 682.90 920.36 895.96 866.71 691.79 716.48 675.48 674.44 521.48 652.66 591.53 594.56 647.00 748.91 801.48
Days of sales outstanding (DSO) days 76.86 77.69 87.42 100.05 111.79 91.28 96.20 100.30 92.80 94.40 93.97 98.76 89.33 55.07 42.24 36.89 68.34 65.11 58.52 67.01
Number of days of payables days 152.76 165.93 185.89 202.73 227.22 231.75 352.91 344.87 325.60 290.93 307.49 256.07 167.33 144.27 115.89 86.64 204.36 255.78 274.89 337.50

Based on the data provided for Cactus Inc's activity ratios, we can observe trends in the company's operational efficiency over the past few quarters.

1. Days of Inventory on Hand (DOH): The days of inventory on hand have been fluctuating significantly over the periods, ranging from a low of 415.79 days to a high of 931.42 days. This indicates that the company has experienced challenges in managing its inventory efficiently, leading to fluctuations in inventory turnover. The company should focus on optimizing inventory levels to improve efficiency and reduce holding costs.

2. Days of Sales Outstanding (DSO): The days of sales outstanding have varied as well, with a range from 36.89 days to 111.79 days. A lower DSO indicates that the company is collecting its receivables faster, which is favorable for cash flow management. However, the company has experienced some fluctuations in this ratio, suggesting potential issues with credit management and collection procedures.

3. Number of Days of Payables: The number of days of payables has also shown variability, ranging from 86.64 days to 352.91 days. A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which may strain vendor relationships. However, consistently high days of payables can sometimes indicate effective working capital management strategies.

Overall, Cactus Inc should focus on improving its inventory management to reduce excess holding costs, optimizing its account receivable collection processes to enhance cash flow, and finding a balance in its payment terms with suppliers to maintain healthy relationships. Monitoring these activity ratios regularly can help the company better understand its operational efficiency and make informed decisions to drive profitability and liquidity.

Long-term

Mar 31, 2024 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
Fixed asset turnover 3.29 3.16 2.94 2.63 2.21 5.33 4.84 4.30 3.76 3.39 2.84 2.37 2.01 2.45 2.83 3.32 3.83 3.87 3.98 3.94
Total asset turnover 0.72 0.72 0.69 0.62 0.51 0.62 0.58 0.52 0.49 0.45 0.39 0.34 0.32 0.43 0.52 0.63 0.73 0.75 0.77 0.78

The fixed asset turnover ratio for Cactus Inc has shown fluctuating trends over the past few quarters, indicating varying efficiency in generating revenue from its fixed assets. The ratio ranged from 2.01 to 5.33 over the last two years, with a significant decline in the most recent quarter from 3.29 to 2.21. This suggests that the company may be experiencing challenges in utilizing its fixed assets effectively to generate sales.

In comparison, the total asset turnover ratio remained relatively stable, hovering around 0.4 to 0.7 over the same period. The ratio indicates how efficiently the company is using its total assets to generate revenue, with a higher ratio suggesting better utilization of assets. Despite the stability, the total asset turnover ratio is significantly lower than the fixed asset turnover ratio, indicating that the company may have excess or underutilized assets impacting its overall efficiency in generating sales.

Overall, the analysis of Cactus Inc's long-term activity ratios suggests that the company may need to focus on optimizing the utilization of both its fixed and total assets to improve its revenue generation efficiency and overall financial performance.