The AES Corporation (AES)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 | 10,189,000 |
| Total current assets | US$ in thousands | 6,649,000 | 7,643,000 | 5,356,000 | 5,414,000 | 5,231,000 |
| Total current liabilities | US$ in thousands | 9,731,000 | 6,491,000 | 4,732,000 | 5,362,000 | 5,096,000 |
| Working capital turnover | — | 10.95 | 17.85 | 185.77 | 75.47 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,668,000K ÷ ($6,649,000K – $9,731,000K)
= —
The working capital turnover for AES Corp. has exhibited fluctuations over the past five years. In 2019, the company's working capital turnover was 75.47, demonstrating that AES Corp. generated $75.47 in revenue for every dollar of working capital invested, indicating efficient utilization of its working capital. Subsequently, in 2020, the working capital turnover significantly increased to 185.77, reflecting an even more efficient management of working capital to generate revenue.
However, in the following years, there was a decrease in the working capital turnover. In 2021, the working capital turnover decreased to 17.85, which still indicates the effective utilization of working capital but at a lower level compared to the prior year. This decline continued in 2022, with a further drop in working capital turnover to 10.95.
The absence of a working capital turnover figure for the most recent year, 2023, could be due to data availability or other reasons. Nonetheless, based on the trends observed in the preceding years, it appears that AES Corp. experienced fluctuations in its working capital turnover, showcasing varying levels of efficiency in utilizing its working capital to generate revenue. Further analysis and comparison with industry benchmarks would provide additional insights into the company's working capital management efficiency.