Williams Companies Inc (WMB)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Inventory turnover 2.98 2.93 2.85 3.28 2.87 3.14 3.54 3.73 2.72 1.75 1.91 3.29 1.66 2.72 4.97 6.78 15.38 14.94 17.69 23.84
Receivables turnover 5.64 8.05 7.47 7.82 6.59 7.79 8.45 7.56 4.03 4.25 3.86 5.34 5.37 4.76 8.93 7.96 7.73 7.65 8.60 8.67
Payables turnover 0.52 0.71 0.66 0.75 0.57 0.61 0.80 0.72 0.37 0.30 0.28 0.42 0.36 0.60 1.58 1.82 4.34 5.05 3.08 6.97
Working capital turnover — — — — — — — — — — — — — — — — — — — —

Inventory Turnover:
- The inventory turnover ratio for Williams Companies Inc has been declining steadily over the past few years, indicating that the company is taking longer to sell its inventory.
- A decreasing trend in inventory turnover may suggest inefficiencies in inventory management or a decline in demand for the company's products or services.

Receivables Turnover:
- The receivables turnover ratio for Williams Companies Inc has shown some fluctuations over the years.
- A higher receivables turnover ratio generally indicates that the company is efficient in collecting its accounts receivable.
- The lower ratios in some periods may suggest possible issues with credit policies or collection procedures.

Payables Turnover:
- The payables turnover ratio for Williams Companies Inc has also been decreasing over the years, indicating that the company is taking longer to pay off its suppliers.
- This trend may imply that the company is taking advantage of longer payment terms or facing liquidity issues that affect its ability to settle payables promptly.

Working Capital Turnover:
- There is no data available for the working capital turnover ratio for Williams Companies Inc for the periods provided.
- This ratio measures how efficiently a company is using its working capital to generate sales, and the lack of data makes it challenging to assess the company's working capital management efficiency.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Days of inventory on hand (DOH) days 122.40 124.69 128.05 111.41 127.08 116.28 103.20 97.87 134.25 208.37 191.26 110.82 219.23 134.05 73.45 53.80 23.73 24.44 20.63 15.31
Days of sales outstanding (DSO) days 64.74 45.35 48.83 46.67 55.38 46.86 43.17 48.28 90.64 85.95 94.56 68.33 67.94 76.61 40.88 45.87 47.24 47.71 42.44 42.12
Number of days of payables days 707.63 515.53 557.08 485.73 639.56 593.62 456.65 504.58 976.27 1,218.07 1,286.78 873.35 1,009.97 609.79 231.34 200.99 84.10 72.22 118.38 52.35

Williams Companies Inc's activity ratios show significant fluctuations over the periods examined.

- Days of Inventory on Hand (DOH): The trend in DOH shows varying levels of efficiency in managing inventory. The company had a relatively stable DOH in 2020 and early 2021, but a sharp increase in the following quarters, peaking in the last quarter of 2022. There was a slight decrease in DOH at the end of 2024, indicating potential improvement in inventory management.

- Days of Sales Outstanding (DSO): The DSO ratio indicates the average number of days it takes for the company to collect its accounts receivable. Williams Companies Inc saw fluctuations in DSO over the periods analyzed, with peaks in late 2021 and mid-2022. The DSO decreased towards the end of 2023 and 2024, which suggests a positive trend in collecting receivables.

- Number of Days of Payables: The payables turnover indicates how long it takes for the company to pay its suppliers. Williams Companies Inc shows a significant increase in payables days, peaking in the last quarter of 2022. The company took over 1,000 days to pay its suppliers at the end of 2021. There was a gradual decrease in payables days towards the end of 2024.

Overall, the company's activity ratios reflect fluctuations in inventory management, accounts receivable collection, and payments to suppliers. These fluctuations may be a result of various factors, including changes in the company's operating cycle, industry dynamics, and supply chain disruptions. Monitoring these ratios is essential for assessing operational efficiency and liquidity management.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Fixed asset turnover 0.27 0.28 0.28 0.29 0.32 0.34 0.36 0.36 0.35 0.37 0.36 0.36 0.36 0.32 0.30 0.29 0.27 0.27 0.27 0.28
Total asset turnover 0.19 0.20 0.20 0.20 0.21 0.22 0.23 0.24 0.23 0.23 0.23 0.23 0.22 0.21 0.20 0.19 0.17 0.17 0.17 0.18

The fixed asset turnover ratio for Williams Companies Inc has displayed relatively stable performance over the analyzed period, fluctuating between 0.27 and 0.37. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue, with a higher ratio being favorable.

On the other hand, the total asset turnover ratio has also shown consistency, ranging from 0.17 to 0.24. This ratio reflects the company's ability to generate sales relative to its total assets, highlighting its efficiency in asset utilization.

Overall, both ratios suggest that Williams Companies Inc has been maintaining a steady level of efficiency in terms of utilizing both fixed and total assets to generate revenue over the analyzed period.