Advanced Energy Industries Inc (AEIS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,482,040 | 1,655,810 | 1,845,420 | 1,455,950 | 1,415,830 |
| Total current assets | US$ in thousands | 1,389,320 | 1,711,890 | 1,188,510 | 1,162,230 | 981,223 |
| Total current liabilities | US$ in thousands | 314,222 | 335,848 | 393,043 | 370,217 | 297,371 |
| Working capital turnover | 1.38 | 1.20 | 2.32 | 1.84 | 2.07 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,482,040K ÷ ($1,389,320K – $314,222K)
= 1.38
Based on the provided data, Advanced Energy Industries Inc's working capital turnover has fluctuated over the past five years. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.
- In December 31, 2020, the working capital turnover was 2.07, indicating that the company generated $2.07 in revenue for every dollar of working capital invested.
- By December 31, 2021, the ratio decreased to 1.84, suggesting a slight decline in the efficiency of working capital utilization.
- In December 31, 2022, the working capital turnover improved significantly to 2.32, indicating that the company effectively used its working capital to generate sales.
- However, the ratio dropped sharply to 1.20 by December 31, 2023, signaling a potential inefficiency in working capital management during that period.
- By December 31, 2024, the ratio increased to 1.38, showing a slight recovery in working capital turnover but still below the levels seen in 2020 and 2022.
Overall, the fluctuation in Advanced Energy Industries Inc's working capital turnover indicates varying degrees of efficiency in utilizing working capital to drive sales revenue over the past five years.
Peer comparison
Dec 31, 2024