Alamo Group Inc (ALG)
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 | 1,689,163 | 1,650,337 | 1,602,481 | 1,561,649 | 1,513,482 | 1,458,602 | 1,429,194 | 1,380,865 | 1,330,676 | 1,290,046 | 1,242,693 | 1,162,691 | 1,163,174 | 1,167,345 | 1,149,039 | 1,167,596 | 1,118,586 | 1,073,880 | 1,060,061 | 1,032,438 |
| Total current assets | US$ in thousands | 803,957 | 873,365 | 871,971 | 845,416 | 727,210 | 750,625 | 748,303 | 749,263 | 612,168 | 635,783 | 622,520 | 611,833 | 515,540 | 567,155 | 572,113 | 623,967 | 570,828 | 524,477 | 536,104 | 531,987 |
| Total current liabilities | US$ in thousands | 213,926 | 219,329 | 214,845 | 204,248 | 190,506 | 192,934 | 189,616 | 198,516 | 192,564 | 195,726 | 184,615 | 172,407 | 157,295 | 157,680 | 133,723 | 162,719 | 162,874 | 120,163 | 117,155 | 114,894 |
| Working capital turnover | 2.86 | 2.52 | 2.44 | 2.44 | 2.82 | 2.62 | 2.56 | 2.51 | 3.17 | 2.93 | 2.84 | 2.65 | 3.25 | 2.85 | 2.62 | 2.53 | 2.74 | 2.66 | 2.53 | 2.48 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,689,163K ÷ ($803,957K – $213,926K)
= 2.86
The working capital turnover of Alamo Group Inc. has been relatively stable over the past eight quarters, ranging from 2.44 to 2.86. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
A higher working capital turnover indicates that the company is effectively managing its working capital to support its sales operations. Alamo Group Inc. has shown consistent performance in this regard, with the ratio hovering around 2.5 to 2.8.
This stability suggests that Alamo Group Inc. has been able to efficiently convert its working capital into sales revenue, reflecting good liquidity management and operational efficiency. However, it would be beneficial to compare this ratio with industry benchmarks or historical data to provide a more comprehensive assessment of the company's performance.
Peer comparison
Dec 31, 2023