Arcosa Inc (ACA)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 1,736,900 | 1,664,400 | 1,598,000 |
| Total current assets | US$ in thousands | 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 | 757,200 | 674,400 | 622,900 |
| Total current liabilities | US$ in thousands | 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 | 284,000 | 223,800 | 203,100 |
| Working capital turnover | 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 | 3.67 | 3.69 | 3.81 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,307,900K ÷ ($912,000K – $431,200K)
= 4.80
Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital resources.
Analyzing the working capital turnover of Arcosa Inc over the past eight quarters, we observe a consistent trend of the ratio ranging between 4.04 and 4.88. This suggests that Arcosa has been maintaining a relatively stable level of efficiency in converting its working capital into sales revenue over the period.
The highest working capital turnover ratio of 4.88 was observed in Q2 2022, indicating that during this period, Arcosa managed to generate a significant amount of sales revenue relative to its working capital investment. On the other hand, the lowest ratio of 4.04 in Q2 2023 may signify a temporary decrease in efficiency in utilizing working capital to drive sales.
Overall, Arcosa Inc's working capital turnover ratios demonstrate a consistent and satisfactory level of efficiency in managing working capital resources to generate sales revenue over the analyzed quarters. Further analysis and comparison with industry peers would provide deeper insights into Arcosa's financial performance and efficiency in working capital management.
Peer comparison
Dec 31, 2023