Advanced Energy Industries Inc (AEIS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,638,800 | 1,842,780 | 1,450,490 | 1,409,450 | 801,389 |
| Total current assets | US$ in thousands | 1,711,890 | 1,188,510 | 1,162,230 | 980,249 | 866,738 |
| Total current liabilities | US$ in thousands | 335,848 | 393,043 | 370,196 | 296,397 | 320,332 |
| Working capital turnover | 1.19 | 2.32 | 1.83 | 2.06 | 1.47 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,638,800K ÷ ($1,711,890K – $335,848K)
= 1.19
Advanced Energy Industries Inc.'s working capital turnover has fluctuated over the past five years. In 2023, the working capital turnover ratio decreased to 1.20 from the previous year's 2.32, indicating a decline in the company's efficiency in generating sales from its working capital. This could imply that the company is struggling to efficiently manage its current assets and liabilities to support its sales activities.
Comparing to the historical data, the highest working capital turnover was observed in 2022 at 2.32, indicating that the company was able to efficiently utilize its working capital to support its revenue generation. However, there was a significant drop in 2023, which may warrant further investigation into the reasons behind this decrease.
Overall, the trend in working capital turnover for Advanced Energy Industries Inc. shows some variability, with fluctuations in efficiency in utilizing working capital to generate sales. Monitoring and improving this ratio could help the company better manage its liquidity and working capital resources.
Peer comparison
Dec 31, 2023