Allegion PLC (ALLE)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,772,200 | 3,650,800 | 3,271,900 | 2,867,400 | 2,719,900 |
| Total current assets | US$ in thousands | 1,422,300 | 1,360,900 | 1,214,600 | 1,117,600 | 1,145,000 |
| Total current liabilities | US$ in thousands | 696,900 | 1,079,700 | 703,600 | 601,200 | 521,500 |
| Working capital turnover | 5.20 | 12.98 | 6.40 | 5.55 | 4.36 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,772,200K ÷ ($1,422,300K – $696,900K)
= 5.20
Based on the data provided, Allegion PLC's working capital turnover has shown a positive trend over the years, increasing from 4.36 in 2020 to 5.20 in 2024. This indicates that the company has become more efficient in utilizing its working capital to generate revenue.
The significant increase in working capital turnover from 2023 to 2024, going from 12.98 to 5.20, suggests that there may have been a change in the company's operating or financial structure during that period which impacted its working capital management.
Overall, the increasing trend in working capital turnover reflects Allegion PLC's ability to effectively manage its working capital resources, which is a positive indicator of the company's operational efficiency and potentially its financial health.