Alcoa Corp (AA)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,895,000 | 10,551,000 | 12,451,000 | 12,152,000 | 9,286,000 |
| Total current assets | US$ in thousands | 4,914,000 | 4,405,000 | 5,250,000 | 5,026,000 | 4,520,000 |
| Total current liabilities | US$ in thousands | 3,395,000 | 3,030,000 | 3,004,000 | 3,223,000 | 2,761,000 |
| Working capital turnover | 7.83 | 7.67 | 5.54 | 6.74 | 5.28 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,895,000K ÷ ($4,914,000K – $3,395,000K)
= 7.83
The working capital turnover ratio for Alcoa Corp has shown a steady increase from 5.28 in December 2020 to 7.83 in December 2024. This indicates that the company has been more efficient in utilizing its working capital to generate sales revenue over the years. A higher working capital turnover ratio suggests that Alcoa Corp is efficiently managing its current assets and liabilities to support its operations and sales growth. The upward trend in this ratio reflects the company's effective management of its working capital components, which is a positive sign for its overall liquidity and operational efficiency.
Peer comparison
Dec 31, 2024