Xcel Energy Inc (XEL)

Short-term

Turnover ratios

The activity ratios for Xcel Energy Inc provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio indicates how many times the company's inventory is sold and replaced within a specific period. Xcel Energy Inc's inventory turnover has been consistently high, ranging from 10.95 to 12.95 over the years. This suggests that the company efficiently manages its inventory, turning it over multiple times, which can lead to lower holding costs and better cash flow.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company collects on its credit sales. However, data for Xcel Energy Inc is unavailable for this ratio. Without this information, it is challenging to assess the effectiveness of the company in collecting payments from customers.

3. Payables Turnover: The payables turnover ratio evaluates how quickly a company pays off its suppliers. Similarly, there is no available data for Xcel Energy Inc regarding payables turnover. This ratio is crucial for understanding the company's payment practices and relationships with its suppliers.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales. Unfortunately, there is no data provided for Xcel Energy Inc's working capital turnover. This ratio helps assess the company's efficiency in managing its current assets and liabilities to support its operations.

In conclusion, while Xcel Energy Inc demonstrates strong inventory turnover, the lack of data for receivables turnover, payables turnover, and working capital turnover limits a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Based on the provided data on Xcel Energy Inc's activity ratios, we can analyze the days of inventory on hand (DOH) metric over the period from December 31, 2020, to December 31, 2024. The DOH represents the number of days it takes for a company to sell its average inventory.

- In December 2020, Xcel Energy had 29.76 days of inventory on hand.
- In December 2021, this figure decreased slightly to 28.18 days, indicating a more efficient management of inventory.
- However, by December 2022, the days of inventory on hand increased to 31.02 days, suggesting a build-up of inventory.
- This trend continued in December 2023 and December 2024, with 31.37 days and 33.33 days of inventory on hand, respectively, showing a potential inefficiency in managing inventory levels.

Unfortunately, we do not have data available for the days of sales outstanding (DSO) and the number of days of payables for Xcel Energy Inc for the same period. These metrics are crucial for understanding the company's efficiency in collecting receivables and managing payables.

Overall, based on the available data on DOH, Xcel Energy Inc experienced fluctuations in its inventory management efficiency over the period, highlighting the importance of closely monitoring inventory levels to optimize working capital and operational efficiency.

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Long-term

Based on the provided data for Xcel Energy Inc, let's analyze the long-term activity ratios:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets.
- Xcel Energy Inc's fixed asset turnover has been increasing over the years, from 0.27 in 2020 to 0.30 in 2021 and further to 0.32 in 2022.
- A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
- However, data is not available for 2023 and 2024, so it is challenging to assess the trend in the subsequent years.

2. Total Asset Turnover:
- The total asset turnover ratio indicates how efficiently a company generates sales from its total assets.
- Xcel Energy Inc's total asset turnover increased from 0.21 in 2020 to 0.23 in 2021 and further to 0.25 in 2022.
- In 2023, the total asset turnover ratio slightly decreased to 0.22, and in 2024, it dropped further to 0.19.
- A decreasing trend in total asset turnover may indicate that the company's sales are not increasing proportionately with its total assets, which could be a concern for operational efficiency.

In conclusion, Xcel Energy Inc has shown improvement in its fixed asset turnover over the years, indicating better utilization of its fixed assets to generate revenue. However, the fluctuating trend in total asset turnover suggests a need for further analysis to understand the company's overall efficiency in generating sales from its total assets.