Arcosa Inc (ACA)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,569,900 | 2,307,900 | 2,242,800 | 2,036,400 | 1,935,600 |
| Total current assets | US$ in thousands | 954,000 | 912,000 | 856,800 | 767,900 | 664,900 |
| Total current liabilities | US$ in thousands | 516,000 | 431,200 | 367,700 | 364,000 | 310,300 |
| Working capital turnover | 5.87 | 4.80 | 4.59 | 5.04 | 5.46 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,569,900K ÷ ($954,000K – $516,000K)
= 5.87
Based on the data provided, Arcosa Inc's working capital turnover has shown some fluctuations over the years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
In 2020, the working capital turnover was 5.46, indicating that Arcosa effectively generated $5.46 in net sales for every $1 of working capital invested. The ratio decreased to 5.04 in 2021, suggesting a slight decrease in efficiency in utilizing working capital.
The trend continued with a further decrease to 4.59 in 2022, reflecting a potential inefficiency in managing working capital to generate sales. However, there was a slight improvement in 2023 with a ratio of 4.80, indicating a better utilization of working capital compared to the previous year.
Notably, there was a significant improvement in 2024 with a working capital turnover of 5.87, suggesting that Arcosa was able to efficiently generate sales revenue in that year relative to its working capital.
In conclusion, while there were fluctuations in Arcosa Inc's working capital turnover over the years, the company overall demonstrated an ability to efficiently use its working capital to generate sales revenue, with a notable improvement in 2024.
Peer comparison
Dec 31, 2024