Arcosa Inc (ACA)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,307,900 | 2,242,800 | 2,036,400 | 1,935,600 | 1,736,900 |
| Total current assets | US$ in thousands | 912,000 | 856,800 | 767,900 | 664,900 | 757,200 |
| Total current liabilities | US$ in thousands | 431,200 | 367,700 | 364,000 | 310,300 | 284,000 |
| Working capital turnover | 4.80 | 4.59 | 5.04 | 5.46 | 3.67 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,307,900K ÷ ($912,000K – $431,200K)
= 4.80
The working capital turnover of Arcosa Inc has shown variability over the past five years, ranging from 3.67 in 2019 to 5.46 in 2020. The ratio measures how efficiently the company is using its working capital to generate revenue. A higher working capital turnover ratio indicates more efficient utilization of working capital.
In the most recent year, 2023, the working capital turnover ratio stands at 4.80, showing a slight decrease from the previous year's ratio of 4.59 in 2022. Despite the decrease, the company continues to effectively leverage its working capital to generate revenue.
Over the five-year period, the company's working capital turnover has generally been robust, indicating effective management of working capital resources. However, it is important for Arcosa Inc to monitor this ratio closely to ensure continued efficiency in its working capital management.
Peer comparison
Dec 31, 2023