Essential Utilities Inc (WTRG)
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 | 11.12 | 10.16 | 12.65 | 14.64 | 9.02 | 9.14 | 11.10 | 12.93 | 6.09 | 4.70 | 8.10 | 17.00 | 8.13 | 7.42 | 13.14 | 23.90 | 11.89 | 7.95 | 9.16 | 11.00 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The analysis of Essential Utilities Inc's activity ratios reveals some interesting trends.
1. Inventory Turnover:
- The inventory turnover ratio increased significantly from December 31, 2022, to March 31, 2023, indicating that the company was able to sell its inventory faster during that period.
- However, there was a decline in the inventory turnover ratio from March 31, 2023, to September 30, 2023. This suggests that the company may have experienced challenges in managing its inventory efficiently during this period.
- The inventory turnover ratio remained relatively stable from September 30, 2023, to December 31, 2024, indicating consistent inventory management practices.
2. Receivables Turnover:
- Data for the receivables turnover ratio is not available for the periods provided. This may indicate that Essential Utilities Inc does not experience significant fluctuations in its accounts receivables turnover.
3. Payables Turnover:
- Similar to the receivables turnover, data for the payables turnover ratio is not available for the periods provided. This suggests that the company's accounts payables turnover may not vary significantly, or the information is not disclosed in the financial statements.
4. Working Capital Turnover:
- Data for the working capital turnover ratio is not available for the periods provided. This could indicate that Essential Utilities Inc does not rely heavily on its working capital to generate revenue or that the information is not disclosed in the financial statements.
Overall, based on the available data, Essential Utilities Inc appears to have managed its inventory effectively, with some fluctuations in the turnover ratio observed over the periods analyzed. Further information on the receivables turnover, payables turnover, and working capital turnover would provide a more comprehensive assessment of the company's efficiency in managing its working capital and operational activities.
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 | 32.82 | 35.92 | 28.85 | 24.93 | 40.47 | 39.92 | 32.87 | 28.24 | 59.97 | 77.62 | 45.07 | 21.47 | 44.89 | 49.19 | 27.79 | 15.27 | 30.70 | 45.90 | 39.85 | 33.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Essential Utilities Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The trend in the DOH ratio shows fluctuations over the periods analyzed.
- The DOH ranged from a low of 15.27 days on March 31, 2021, to a high of 77.62 days on September 30, 2022.
- Lower DOH values indicate that Essential Utilities Inc is managing its inventory efficiently, while higher values may indicate overstocking or slow-moving inventory.
- Overall, Essential Utilities Inc experienced varying levels of inventory management effectiveness during the periods studied.
2. Days of Sales Outstanding (DSO):
- The data for DSO is not available, indicating that the company's accounts receivable turnover rate is not provided in the dataset.
- DSO is a measure of how quickly a company collects its outstanding account receivables. Without this data, it is challenging to assess Essential Utilities Inc's efficiency in collecting receivables.
3. Number of Days of Payables:
- Similar to DSO, data for the number of days of payables is not available in the dataset, making it difficult to analyze Essential Utilities Inc's payment practices to its suppliers.
- The payables turnover ratio provides insights into how long the company takes to pay its suppliers, which impacts its working capital management.
In summary, the analysis of Essential Utilities Inc's activity ratios based on the available data reveals fluctuations in the Days of Inventory on Hand ratio, but lacking data for Days of Sales Outstanding and Number of Days of Payables limits the comprehensive assessment of the company's overall efficiency in managing its working capital components.
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 | — | — | — | — | — | 0.19 | 0.20 | 0.20 | 0.21 | 0.19 | 0.19 | 0.19 | 0.18 | 0.18 | 0.18 | 0.19 | 0.15 | 0.13 | 0.12 | 0.11 |
| Total asset turnover | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.14 | 0.14 | 0.15 | 0.15 | 0.14 | 0.14 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.11 | 0.09 | 0.09 | 0.07 |
The fixed asset turnover ratio for Essential Utilities Inc has shown a gradual increase from 0.11 in March 2020 to 0.21 in December 2022, indicating that the company has been able to generate more revenue relative to its fixed assets over this period. However, there was a slight decrease to 0.20 by March 2023 and has remained relatively stable around 0.19-0.20 in the subsequent quarters.
On the other hand, the total asset turnover ratio started at 0.07 in March 2020 and has also shown an upward trend, reaching 0.15 in March 2023. However, there was a dip to 0.11 by September 2024. This ratio suggests that Essential Utilities Inc has been more efficient in generating revenue compared to its total assets during the given period.
Overall, the fixed asset turnover and total asset turnover ratios provide insights into how effectively Essential Utilities Inc is utilizing its fixed and total assets to generate sales, with both ratios showing improvements and fluctuations over the analyzed quarters.