EQT Corp. (NYSE:EQT)

The analysis of financial turnover ratios and related periods over the five years reveals several notable trends and fluctuations.

Receivables Turnover

This ratio exhibited variability throughout the period. It started at 3.99 in 2017, declined slightly to 3.78 in 2018, then surged to 6.21 in 2019, indicating a significant improvement in collection efficiency that year. The ratio then decreased to 4.68 in 2020 and slightly rose to 4.73 in 2021. Overall, there is an upward trend from 2018 to 2019 followed by a partial decline but maintaining a level above early years.

Payables Turnover

The payables turnover ratio increased steadily from 3.65 in 2017 to 4.76 in 2019, signaling more frequent payments to suppliers. It dipped to 3.76 in 2020, possibly reflecting delayed payments or changing credit terms, before reaching a peak of 5.08 in 2021, the highest in the observed period. This indicates a more aggressive payment strategy or favorable supplier terms by the final year.

Working Capital Turnover

Data for this ratio is only available for 2019, showing a high turnover ratio of 9.27. Without comparative data for other years, trend analysis is limited, but this figure indicates high efficiency in utilizing working capital during that year.

Average Receivable Collection Period

The collection period experienced notable changes, starting at 92 days in 2017 and increasing to 97 days in 2018, reflecting a slower collection process. A significant improvement occurred in 2019 with the period dropping to 59 days, consistent with the increase in receivables turnover. Slight increases were noted in 2020 and 2021, ending at 77 days, which remains better than the initial years.

Average Payables Payment Period

The payment period decreased from 100 days in 2017 to 82 days in 2018 and further to 77 days in 2019, indicating quicker payments. However, the period extended back to 97 days in 2020, suggesting potential payment deferrals, before dropping substantially to 72 days in 2021, the shortest period in the timeframe. This pattern reflects variable payment strategies, potentially influenced by cash flow considerations or supplier negotiations.

In summary, the company demonstrated improved efficiency in receivable collection around 2019, aligned with increased receivables turnover and shorter collection periods. Payable management showed some fluctuation with aggressive payment behavior in 2021, evidenced by the highest payables turnover ratio and the shortest payment period. The single datum for working capital turnover suggests high asset utilization efficiency at least in 2019. The overall patterns suggest active management of receivables and payables to optimize cash flows, with some variability likely in response to external or internal factors across the years.

Sales of natural gas, natural gas liquids and oil

The sales figures demonstrate notable fluctuations over the observed periods. There was a significant increase from approximately 2.65 billion US dollars in 2017 to about 4.70 billion in 2018. This was followed by a decline to 3.79 billion in 2019 and further to 2.65 billion in 2020. However, in 2021, sales surged markedly, reaching approximately 6.80 billion US dollars, the highest value across the five years. This pattern suggests volatility in the market or operational activities affecting revenue generation.

Accounts receivable, less provision for doubtful accounts

The accounts receivable balance also exhibited variability. It more than doubled from roughly 665 million US dollars at the end of 2017 to about 1.24 billion in 2018. Subsequently, it declined sharply to approximately 610 million in 2019 and then slightly decreased further in 2020 to around 567 million. By 2021, the accounts receivable increased again substantially to over 1.43 billion US dollars. These fluctuations generally mirror the trends in sales, indicating a correlation between revenue volumes and receivables management.

Receivables turnover

The receivables turnover ratio fluctuated during the timeframe under consideration. It started at a ratio of 3.99 in 2017 and slightly decreased to 3.78 in 2018, indicating a marginal slowdown in the collection efficiency. The ratio then improved significantly to 6.21 in 2019, reflecting enhanced efficiency in collecting receivables relative to sales. However, this ratio decreased to 4.68 in 2020 and slightly increased to 4.73 in 2021. Overall, the data suggests periods of varying effectiveness in converting receivables into cash, potentially influenced by sales volume shifts and credit policy adjustments.

Sales of natural gas, natural gas liquids and oil

The sales figures exhibit a fluctuating trend over the five-year period. Beginning at approximately 2.65 billion USD in 2017, sales significantly increased in 2018 to around 4.7 billion USD. However, in 2019, sales decreased to roughly 3.79 billion USD and continued to decline in 2020, reaching approximately 2.65 billion USD, matching the 2017 level. A notable rebound occurred in 2021 with sales peaking at 6.8 billion USD, which is the highest value within the period. This indicates volatility but an overall strong recovery and growth in the latest year.

Accounts payable

Accounts payable demonstrates variability aligned with sales trends but with less pronounced fluctuations. Starting at 726 million USD in 2017, the liability increased sharply in 2018 to nearly 1.06 billion USD. It then decreased in 2019 and 2020 to 796 million USD and 705 million USD, respectively. In 2021, accounts payable rose again to approximately 1.34 billion USD. The values suggest working capital management adjustments corresponding to operational activity levels.

Payables turnover

The payables turnover ratio reflects changes in payment efficiency and supplier relationship management. It increased from 3.65 in 2017 to 4.43 in 2018 and further to 4.76 in 2019, indicating faster payments to suppliers during these years. A decline to 3.76 in 2020 suggests slower payment cycles, possibly due to the pandemic's impact. In 2021, the ratio sharply rose to 5.08, the highest in the period, signaling improved payment velocity and possibly stronger liquidity or negotiating power.

Working Capital

The working capital figures exhibit significant volatility throughout the periods analyzed. Starting at a negative value of -$69,182 thousand in 2017, the trend worsened substantially by 2018, reaching -$385,337 thousand. Remarkably, in 2019, the figure turned positive to $408,953 thousand, indicating some improvement in the company's short-term financial health. However, the subsequent years show a return to negative working capital, with -$546,960 thousand in 2020 and a sharp decline to -$2,793,405 thousand in 2021, suggesting increasing financial strain and liquidity challenges.

Sales of Natural Gas, Natural Gas Liquids, and Oil

The sales revenue from natural gas, natural gas liquids, and oil revealed an overall upward trend, despite some fluctuations. The sales increased from approximately $2,651,318 thousand in 2017 to a peak of $4,695,519 thousand in 2018. There was a noticeable decline in 2019 and 2020 to $3,791,414 thousand and $2,650,299 thousand respectively, which may reflect market or operational disruptions during these years. However, 2021 demonstrated a strong recovery and significant growth, with sales more than doubling relative to 2020, reaching $6,804,020 thousand.

Working Capital Turnover

Data for working capital turnover is limited, with a single recorded ratio of 9.27 in 2019. This indicates the efficiency with which the company utilized its working capital to generate sales during that year, corresponding to the period when working capital was positive and sales were moderately strong. The absence of data in other years precludes trend analysis for this ratio.

Summary Insights

The company experienced significant volatility in its working capital, with a brief improvement in 2019 followed by substantial deterioration through 2021. Despite this, sales of natural gas and related products largely trended upward over the five-year span, particularly with strong growth in 2021. The company’s liquidity position appears to have weakened considerably by the end of the period, which may have implications for operational flexibility and requires careful management. The limited data on working capital turnover suggests that efficiency peaked during 2019 but lacks sufficient information for comprehensive evaluation over the entire timeline.

The data reveals fluctuating trends in receivables management over the five-year period ending in 2021.

Receivables Turnover Ratio

The receivables turnover ratio showed variability, starting at 3.99 in 2017 and slightly decreasing to 3.78 in 2018. It surged significantly to 6.21 in 2019, indicating improved efficiency in collecting receivables. However, this ratio declined to 4.68 in 2020 and remained relatively stable at 4.73 in 2021. Overall, the turnover ratio exhibited a peak in 2019 but retreated thereafter, suggesting some loss of the heightened collection efficiency gained.

Average Receivable Collection Period

This metric inversely mirrors the turnover ratio trends. It began at 92 days in 2017 and increased to 97 days in 2018, implying slower collections. The period then dropped sharply to 59 days in 2019, which coincides with the peak in turnover ratio, reflecting faster cash conversion from receivables. Nevertheless, the collection period extended again to 78 days in 2020 and slightly improved to 77 days in 2021, consistent with the decrease in turnover ratio after 2019.

In summary, the company demonstrated improved receivables management effectiveness in 2019, with the highest turnover ratio and shortest collection period in the observed timeline. The subsequent years showed a reversal towards longer collection times and reduced turnover, pointing to a need for attention in managing receivables to maintain liquidity and operational efficiency.

Payables Turnover

The payables turnover ratio demonstrates an overall increasing trend from 3.65 in 2017 to 5.08 in 2021. After a significant rise from 3.65 in 2017 to 4.76 in 2019, the ratio experienced a decline to 3.76 in 2020, followed by a notable recovery and peak at 5.08 in 2021. This pattern indicates a general improvement in the company's efficiency in managing its payables over the given period, with a temporary setback in 2020.

Average Payables Payment Period

The average payables payment period, measured in number of days, exhibits an inverse trend relative to the payables turnover ratio, declining from 100 days in 2017 to 72 days in 2021. The period decreased steadily from 100 days in 2017 to 77 days in 2019, then increased again to 97 days in 2020 before dropping sharply to the lowest point of 72 days in 2021. This reflects an overall improvement in payment speed, especially evident in 2021, despite the temporary elongation in 2020.

Observed Patterns and Insights

Both metrics collectively suggest that the company enhanced its payables management efficiency over the five-year span. The increase in payables turnover coupled with the reduction in payment period days points to faster payment cycles and potentially improved supplier relationships or negotiating terms. The dip in turnover and increase in payment period during 2020 may correspond to external disruptions or internal operational adjustments. The strong rebound in 2021 indicates a return to a more aggressive payment strategy.