AMC Networks Inc (AMCX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,567,570 | 2,966,680 | 2,943,660 | 2,671,620 | 2,943,430 |
| Total current assets | US$ in thousands | 1,623,370 | 1,949,870 | 2,000,190 | 1,938,770 | 2,330,300 |
| Total current liabilities | US$ in thousands | 943,423 | 1,170,230 | 1,058,080 | 878,467 | 804,342 |
| Working capital turnover | 3.78 | 3.81 | 3.12 | 2.52 | 1.93 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,567,570K ÷ ($1,623,370K – $943,423K)
= 3.78
AMC Networks Inc's working capital turnover has shown a positive trend over the past five years, indicating an improvement in the efficiency of its working capital management. The ratio has increased steadily from 2.01 in 2019 to 3.99 in 2023, reflecting the company's ability to generate revenue relative to its levels of working capital.
A higher working capital turnover ratio suggests that the company is effectively utilizing its current assets to generate sales revenue. This can be a sign of strong operational efficiency and effective inventory management. It also indicates that the company is able to quickly convert its working capital into revenue, which can improve overall liquidity and financial health.
Overall, the increasing trend in AMC Networks Inc's working capital turnover ratio is a positive signal for investors and stakeholders, highlighting the company's ability to efficiently manage its working capital to drive revenue growth.
Peer comparison
Dec 31, 2023