Arcosa Inc (ACA)
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 | 2,569,900 | 2,485,900 | 2,437,200 | 2,357,300 | 2,307,900 | 2,226,000 | 2,238,200 | 2,256,200 | 2,242,800 | 2,264,300 | 2,219,500 | 2,131,800 | 2,036,400 | 1,973,500 | 1,904,400 | 1,887,800 | 1,935,600 | 1,923,600 | 1,878,600 | 1,814,200 |
| Total current assets | US$ in thousands | 954,000 | 1,559,700 | 990,900 | 993,700 | 912,000 | 951,500 | 975,100 | 912,900 | 856,800 | 922,800 | 871,300 | 841,600 | 767,900 | 810,900 | 784,000 | 697,800 | 664,900 | 740,600 | 705,900 | 772,000 |
| Total current liabilities | US$ in thousands | 516,000 | 432,300 | 429,400 | 434,900 | 431,200 | 405,100 | 420,800 | 380,400 | 367,700 | 423,400 | 416,400 | 403,700 | 364,000 | 389,400 | 353,000 | 312,200 | 310,300 | 312,200 | 285,900 | 279,000 |
| Working capital turnover | 5.87 | 2.20 | 4.34 | 4.22 | 4.80 | 4.07 | 4.04 | 4.24 | 4.59 | 4.53 | 4.88 | 4.87 | 5.04 | 4.68 | 4.42 | 4.90 | 5.46 | 4.49 | 4.47 | 3.68 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,569,900K ÷ ($954,000K – $516,000K)
= 5.87
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively managing its working capital to support its sales activities.
Analyzing the trend of Arcosa Inc's working capital turnover from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The ratio started at 3.68 on March 31, 2020, and increased steadily to peak at 5.87 by December 31, 2024. This indicates an improvement in the company's efficiency in utilizing its working capital during this period.
However, during the analysis period, there were fluctuations in the working capital turnover ratio, with some quarters showing lower ratios compared to the previous periods. For example, on September 30, 2024, the working capital turnover ratio decreased significantly to 2.20. This implies that the company may have faced challenges in efficiently utilizing its working capital to support its sales during that quarter.
Overall, Arcosa Inc's working capital turnover ratio has shown variability over the period, but the general trend indicates an improvement in its efficiency in converting working capital into sales. It is important for the company to continue monitoring and managing its working capital effectively to sustain its operations and support future growth.
Peer comparison
Dec 31, 2024