Adient PLC (ADNT)

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 15,356,000 15,395,000 15,316,000 14,746,000 14,340,000 14,121,000 13,242,000 12,999,000 13,312,000 13,680,000 14,506,000 12,890,000 12,582,000 12,670,000 12,994,000 15,587,000 16,304,000 16,526,000 16,750,000 17,025,000
Total current assets US$ in thousands 4,074,000 4,316,000 4,406,000 4,269,000 4,087,000 4,163,000 4,062,000 4,317,000 5,091,000 5,086,000 4,114,000 4,090,000 4,496,000 4,482,000 3,459,000 4,276,000 3,799,000 4,116,000 4,253,000 3,926,000
Total current liabilities US$ in thousands 3,548,000 3,738,000 3,720,000 3,671,000 3,418,000 3,501,000 3,387,000 3,658,000 3,742,000 3,511,000 3,631,000 3,661,000 3,584,000 3,819,000 3,083,000 4,223,000 3,683,000 3,835,000 3,963,000 4,004,000
Working capital turnover 29.19 26.63 22.33 24.66 21.43 21.33 19.62 19.73 9.87 8.69 30.03 30.05 13.80 19.11 34.56 294.09 140.55 58.81 57.76

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,356,000K ÷ ($4,074,000K – $3,548,000K)
= 29.19

Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates effective management of working capital.

Based on the data provided for Adient plc, the working capital turnover has shown an increasing trend over the quarters, from 19.62 in Q2 2022 to 29.19 in Q1 2024. This indicates that the company has been able to generate more sales revenue from its working capital during this period.

The company's working capital turnover ranged between 19.62 and 29.19 over the past eight quarters. The highest turnover ratio in Q1 2024 suggests that Adient plc is becoming more efficient in managing its working capital to support its sales activities.

Overall, Adient plc's increasing working capital turnover ratio reflects positively on its ability to optimize the use of its working capital resources to drive sales growth. This indicates efficient management of working capital, which can contribute to the company's financial performance and sustainability in the long run.


Peer comparison

Dec 31, 2023