Alamo Group Inc (ALG)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,628,513 | 1,660,732 | 1,679,075 | 1,703,466 | 1,689,651 | 1,658,713 | 1,607,862 | 1,563,382 | 1,513,616 | 1,464,185 | 1,433,703 | 1,385,039 | 1,334,223 | 1,285,674 | 1,239,122 | 1,160,207 | 1,163,466 | 1,175,031 | 1,155,101 | 1,171,652 |
| Total current assets | US$ in thousands | 857,495 | 879,604 | 907,476 | 915,531 | 803,957 | 873,365 | 871,971 | 845,416 | 727,210 | 750,625 | 748,303 | 749,263 | 612,168 | 635,783 | 622,520 | 611,833 | 503,010 | 567,155 | 572,113 | 623,967 |
| Total current liabilities | US$ in thousands | 190,309 | 212,016 | 207,556 | 213,362 | 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 |
| Working capital turnover | 2.44 | 2.49 | 2.40 | 2.43 | 2.86 | 2.54 | 2.45 | 2.44 | 2.82 | 2.63 | 2.57 | 2.51 | 3.18 | 2.92 | 2.83 | 2.64 | 3.37 | 2.87 | 2.63 | 2.54 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,628,513K ÷ ($857,495K – $190,309K)
= 2.44
Alamo Group Inc's working capital turnover has shown fluctuations over the analyzed period, ranging from a low of 2.40 in June 30, 2024, to a high of 3.37 in December 31, 2020. The working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively using its short-term assets and liabilities to support sales.
In general, Alamo Group Inc's working capital turnover has been relatively stable, with minor variations seen from period to period. The company experienced a notable increase in efficiency in managing its working capital from December 31, 2020, to December 31, 2021, with the ratio increasing from 3.37 to 3.18. However, there was a slight decline in the ratio in the following periods, stabilizing around 2.5-2.9 range.
It is essential for Alamo Group Inc to monitor its working capital turnover consistently, as it reflects the company's ability to efficiently convert its working capital into revenue. Maintaining a healthy working capital turnover ratio indicates effective management of short-term assets and liabilities, ensuring operational liquidity and financial stability.
Peer comparison
Dec 31, 2024