Alcoa Corp (AA)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,895,000 | 11,004,000 | 10,702,000 | 10,480,000 | 10,551,000 | 10,619,000 | 10,868,000 | 11,828,000 | 12,451,000 | 13,128,000 | 13,386,000 | 12,575,000 | 12,152,000 | 11,204,000 | 10,460,000 | 9,775,000 | 9,286,000 | 9,330,000 | 9,532,000 | 10,095,000 |
| Total current assets | US$ in thousands | 4,914,000 | 4,866,000 | 4,903,000 | 4,881,000 | 4,405,000 | 4,365,000 | 4,670,000 | 4,946,000 | 5,250,000 | 5,350,000 | 5,863,000 | 5,598,000 | 5,026,000 | 4,285,000 | 4,201,000 | 4,891,000 | 4,520,000 | 4,026,000 | 3,179,000 | 3,333,000 |
| Total current liabilities | US$ in thousands | 3,395,000 | 3,459,000 | 3,166,000 | 3,041,000 | 3,030,000 | 2,624,000 | 2,596,000 | 2,785,000 | 3,004,000 | 2,954,000 | 3,236,000 | 3,466,000 | 3,223,000 | 2,929,000 | 2,671,000 | 3,221,000 | 2,761,000 | 2,276,000 | 2,241,000 | 2,223,000 |
| Working capital turnover | 7.83 | 7.82 | 6.16 | 5.70 | 7.67 | 6.10 | 5.24 | 5.47 | 5.54 | 5.48 | 5.10 | 5.90 | 6.74 | 8.26 | 6.84 | 5.85 | 5.28 | 5.33 | 10.16 | 9.09 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,895,000K ÷ ($4,914,000K – $3,395,000K)
= 7.83
The working capital turnover ratio provides insight into how efficiently a company is utilizing its working capital to generate sales. A higher turnover ratio indicates that the company is effectively managing its working capital and turning it over more frequently.
Analyzing the data for Alcoa Corp's working capital turnover from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The ratio ranged from a high of 10.16 in June 30, 2020, to a low of 5.10 in June 30, 2022.
Overall, the trend shows some variability, with the ratio generally hovering around the 5 to 8 range, indicating that Alcoa Corp is effectively utilizing its working capital to support its sales activity. However, there are periodic fluctuations in the ratio, which may warrant further investigation into the company's working capital management practices.
It would be essential for Alcoa Corp to closely monitor its working capital turnover ratio to ensure that it remains at optimal levels to support its operational efficiency and financial performance. Ongoing analysis and potential adjustments to working capital management strategies may be necessary to maintain a healthy balance between liquidity and profitability.
Peer comparison
Dec 31, 2024