Williams Companies Inc (WMB)

Activity ratios

Short-term

Turnover ratios

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 Mar 31, 2019
Inventory turnover 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 11.74 8.56 8.49 13.26
Receivables turnover 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 8.23 9.48 9.79 9.31
Payables turnover 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 2.66 1.83 1.81 2.76
Working capital turnover — — — — — — — — — — — — — — — — — — — —

The activity ratios for Williams Cos Inc provide insights into the efficiency of its operations in managing inventory, receivables, and payables.

1. Inventory Turnover:
- The inventory turnover ratio has shown a declining trend over the quarters, indicating that inventory is being sold less frequently.
- This may suggest that there could be potential issues with inventory management, such as overstocking or slow-moving inventory.

2. Receivables Turnover:
- The receivables turnover ratio has been relatively stable over the quarters, indicating that the company is collecting its receivables at a consistent rate.
- A higher turnover ratio indicates that the company is efficient in collecting payments from customers.

3. Payables Turnover:
- The payables turnover ratio has shown fluctuations over the quarters, ranging from 1.37 to 2.48.
- A higher turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate strong supplier relationships or efficient cash management.

4. Working Capital Turnover:
- Data for the working capital turnover ratio is not provided in the table, so no analysis can be made based on this ratio.
- The working capital turnover ratio measures how effectively the company is using its working capital to generate sales.

Overall, analyzing these activity ratios can help identify areas of strength or weakness in Williams Cos Inc's operational efficiency, providing valuable insights for management and investors.

Average number of days

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 Mar 31, 2019
Days of inventory on hand (DOH) days 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 31.10 42.65 42.98 27.52
Days of sales outstanding (DSO) days 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 44.33 38.49 37.30 39.19
Number of days of payables days 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 52.35 137.34 199.03 201.10 132.26

Days of Inventory on Hand (DOH) measures how quickly a company turns its inventory into sales. A decreasing trend in Williams Cos Inc's DOH indicates improved efficiency in managing inventory levels over the quarters, with a significant drop from 53.08 days in Q4 2023 to 28.55 days in Q1 2023.

Days of Sales Outstanding (DSO) indicates the average number of days it takes for a company to collect revenue after a sale is made. Williams Cos Inc's DSO fluctuated over the quarters, with a notable decrease from 90.64 days in Q4 2022 to 43.17 days in Q2 2023, suggesting enhanced collection efficiency.

The Number of Days of Payables metric shows how long a company takes to pay its suppliers. Williams Cos Inc's payables days varied across quarters, but there was a reducing trend from Q4 2022 to Q3 2023 before an increase in Q4 2023. This indicates potential changes in the company's payment policies or supplier relationships.

Overall, the company showed improvements in inventory turnover and receivables collection efficiency, which can positively impact cash flow and working capital management. However, the fluctuating payables days warrant closer monitoring to ensure balanced supplier relationships and cash flow optimization.

Long-term

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 Mar 31, 2019
Fixed asset turnover 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 0.28 0.28 0.30 0.30
Total asset turnover 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 0.18 0.18 0.18 0.19

The fixed asset turnover for Williams Cos Inc has been relatively stable over the past eight quarters, ranging between 0.32 and 0.37. This indicates that the company generates approximately $0.32 to $0.37 in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests that Williams Cos Inc has been able to efficiently utilize its fixed assets to generate revenue.

On the other hand, the total asset turnover has also shown consistency, with values ranging between 0.21 and 0.24 over the same period. This ratio reflects the company's ability to generate sales in relation to its total assets. The stability of the total asset turnover indicates that Williams Cos Inc is efficiently using its total assets to generate revenue consistently.

Overall, the stable performance of both the fixed asset turnover and total asset turnover ratios suggests that Williams Cos Inc has been effectively managing its assets to generate revenue over the past two years. The company's ability to generate sales in relation to its fixed and total assets indicates operational efficiency and effective asset utilization strategies.