Xcel Energy Inc (XEL)

Short-term

Turnover ratios

Inventory turnover for Xcel Energy, Inc. has been relatively stable over the past five years, ranging from 7.92 to 9.27. This indicates that the company efficiently manages its inventory levels, with the ability to sell and replace inventory multiple times a year.

Receivables turnover has shown some fluctuation but generally remained within a reasonable range, varying from 6.18 to 7.44. This implies that Xcel Energy effectively collects on its credit sales, with a higher turnover ratio indicating quicker collection of outstanding receivables.

Payables turnover for Xcel Energy has also been consistent, ranging from 3.43 to 4.15. This suggests that the company takes approximately one to four months to pay its suppliers, depending on the year. A higher turnover ratio could indicate efficient cash management.

There is missing data for the working capital turnover ratio, making it difficult to assess how effectively Xcel Energy utilizes its working capital to generate sales revenue. This ratio could provide insights into the company's efficiency in using its current assets to support its operations.

In conclusion, Xcel Energy, Inc. maintains relatively stable activity ratios, indicating efficient management of inventory, receivables, and payables. However, further analysis could be conducted with complete data on the working capital turnover ratio to gain a more comprehensive understanding of the company's overall activity efficiency.

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Average number of days

Activity ratios, such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insight into how efficiently a company manages its assets and liabilities.

1. Days of Inventory on Hand (DOH):
- Xcel Energy's DOH has been gradually increasing over the past five years, indicating that the company is holding onto inventory for a longer period before selling it. This may suggest inefficiencies in inventory management, tying up capital that could otherwise be invested elsewhere.

2. Days of Sales Outstanding (DSO):
- The DSO measures how quickly a company collects its accounts receivable. Xcel Energy's DSO has fluctuated over the years but generally shows a slight upward trend. A higher DSO suggests that the company takes longer to collect its outstanding revenues, potentially impacting its cash flow and liquidity.

3. Number of Days of Payables:
- Xcel Energy's Days of Payables have varied over the years but have generally increased. A higher number of days of payables indicates that the company is taking longer to pay its suppliers and creditors. While this can sometimes signal a positive relationship with suppliers, excessively long payment periods may strain vendor relationships or suggest financial distress.

Overall, while each activity ratio provides a specific perspective on Xcel Energy's operational efficiency, the trends collectively suggest areas for improvement in managing inventory, collecting receivables, and optimizing payment cycles to enhance the company's overall financial performance.

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Long-term

The long-term activity ratios of Xcel Energy, Inc. provide insights into the efficiency of the company in generating revenue from its fixed assets and total assets over time.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate sales. Xcel Energy's fixed asset turnover has been fluctuating over the past five years, ranging from 0.27 to 0.32.
- A declining trend in the fixed asset turnover ratio may indicate inefficiency in utilizing fixed assets to generate revenue, which could be due to over-investment in fixed assets or decreasing sales.
- In 2023, the fixed asset turnover decreased to 0.28 from 0.32 in 2022, suggesting a slight decrease in the efficiency of generating revenue from fixed assets.

2. Total Asset Turnover:
- The total asset turnover ratio indicates how efficiently a company uses its total assets to generate sales. Xcel Energy's total asset turnover has also shown fluctuations over the past five years, ranging from 0.21 to 0.25.
- A higher total asset turnover ratio implies that the company is effectively utilizing its assets to generate sales revenue.
- In 2023, the total asset turnover ratio decreased to 0.22 from 0.25 in 2022, indicating a slight decrease in the efficiency of generating revenue from total assets.

Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios suggests a potential decrease in efficiency in generating revenue from assets for Xcel Energy over the analyzed period. Further analysis and comparison with industry benchmarks may provide more insights into the company's asset utilization efficiency.