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 Mar 31, 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 912,000 951,500 975,100 912,900 856,800 922,800 871,300 841,600 767,900 810,900 784,000 697,800 664,900 740,600 705,900 772,000 757,200 674,400 622,900 617,800
Total current liabilities US$ in thousands 431,200 405,100 420,800 380,400 367,700 423,400 416,400 403,700 364,000 389,400 353,000 312,200 310,300 312,200 285,900 279,000 284,000 223,800 203,100 245,800
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

Company name
Symbol
Working capital turnover
Arcosa Inc
ACA
4.80
Proto Labs Inc
PRLB
3.33
Valmont Industries Inc
VMI
3.88