Autoliv Inc (ALV)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,353,000 | 8,838,000 | 8,201,000 | 7,352,100 | 8,465,200 |
| Total current assets | US$ in thousands | 3,974,000 | 3,714,000 | 3,675,000 | 4,269,000 | 3,002,100 |
| Total current liabilities | US$ in thousands | 4,035,000 | 3,642,000 | 2,821,000 | 3,147,000 | 2,410,200 |
| Working capital turnover | — | 122.75 | 9.60 | 6.55 | 14.30 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,353,000K ÷ ($3,974,000K – $4,035,000K)
= —
Autoliv Inc.'s working capital turnover has shown significant fluctuations over the past five years. In 2019, the working capital turnover stood at 14.44, indicating that the company generated 14.44 times in revenue from its working capital. However, there was a substantial decrease in 2020 to 6.64, followed by another decrease in 2021 to 9.64.
The working capital turnover ratio saw a remarkable improvement in 2022, surging to 119.49. This substantial increase suggests that the company was able to generate a significantly higher amount of revenue relative to its working capital. However, the data for 2023 is not available, so it is not possible to make a direct comparison with the previous year.
Overall, the trend in Autoliv Inc.'s working capital turnover indicates fluctuations in the efficiency of utilizing working capital to generate sales revenue. It is vital for the company to consistently monitor and manage its working capital effectively to support sustainable business operations and growth.
Peer comparison
Dec 31, 2023