Allegion PLC (ALLE)
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 | 3,772,200 | 3,724,000 | 3,674,800 | 3,621,700 | 3,650,800 | 3,614,900 | 3,610,700 | 3,471,300 | 3,271,900 | 3,119,600 | 2,922,900 | 2,896,700 | 2,867,400 | 2,885,500 | 2,896,900 | 2,739,500 | 2,719,900 | 2,712,100 | 2,732,000 | 2,873,700 |
| Total current assets | US$ in thousands | 1,422,300 | 1,862,400 | 1,715,800 | 1,338,300 | 1,360,900 | 1,320,100 | 1,275,200 | 1,253,400 | 1,214,600 | 1,235,900 | 1,753,000 | 1,077,300 | 1,117,600 | 1,202,400 | 1,144,200 | 1,048,000 | 1,145,000 | 1,121,000 | 977,100 | 922,000 |
| Total current liabilities | US$ in thousands | 696,900 | 1,091,500 | 1,034,200 | 1,025,400 | 1,079,700 | 649,800 | 660,800 | 668,500 | 703,600 | 689,200 | 610,400 | 581,500 | 601,200 | 793,900 | 564,100 | 505,600 | 521,500 | 489,100 | 463,700 | 456,700 |
| Working capital turnover | 5.20 | 4.83 | 5.39 | 11.57 | 12.98 | 5.39 | 5.88 | 5.93 | 6.40 | 5.71 | 2.56 | 5.84 | 5.55 | 7.06 | 4.99 | 5.05 | 4.36 | 4.29 | 5.32 | 6.18 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,772,200K ÷ ($1,422,300K – $696,900K)
= 5.20
Allegion PLC's working capital turnover has shown fluctuating trends over the reported periods. The ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher turnover ratio is generally considered more favorable as it suggests that the company is effectively utilizing its resources.
In March 2020, the working capital turnover was 6.18, indicating that Allegion PLC generated sales 6.18 times the amount of its working capital during that period. The ratio gradually decreased to 2.56 in June 2022, signaling a decline in the efficiency of working capital utilization. However, there was a significant improvement by December 2023, with the ratio jumping to 12.98, suggesting a substantial increase in sales relative to working capital.
Following the peak in December 2023, the working capital turnover declined to 4.83 in September 2024, indicating a lower efficiency in utilizing working capital. By the end of December 2024, the ratio slightly increased to 5.20, reflecting a moderate improvement but still below the peak in December 2023.
Overall, Allegion PLC's working capital turnover has displayed varying levels of efficiency in generating sales revenue relative to its working capital. It is important for the company to monitor and manage its working capital effectively to ensure optimal operational performance and maximize profitability.