The Andersons Inc (ANDE)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,257,500 | 14,750,100 | 17,325,400 | 12,612,000 | 8,064,620 |
| Total current assets | US$ in thousands | 2,850,280 | 2,806,960 | 3,465,950 | 3,372,330 | 2,416,410 |
| Total current liabilities | US$ in thousands | 1,731,170 | 1,636,330 | 2,521,320 | 2,463,930 | 1,931,680 |
| Working capital turnover | 10.06 | 12.60 | 18.34 | 13.88 | 16.64 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,257,500K ÷ ($2,850,280K – $1,731,170K)
= 10.06
The working capital turnover ratio is used to measure how efficiently a company is utilizing its working capital to generate revenue.
Based on the data provided for The Andersons Inc, the working capital turnover ratio has fluctuated over the years. In December 31, 2020, the ratio was 16.64, indicating that the company generated $16.64 in revenue for every dollar of working capital invested. This ratio decreased to 13.88 by December 31, 2021, which suggests a decline in efficiency in utilizing working capital.
However, there was an improvement in efficiency in the following years, as the ratio increased to 18.34 by December 31, 2022. This shows that the company was able to generate more revenue relative to its working capital investment.
The ratio then dropped to 12.60 by December 31, 2023, indicating a decrease in efficiency, and further decreased to 10.06 by December 31, 2024. This downward trend may suggest potential concerns about the company's ability to efficiently utilize its working capital to drive revenue growth.
Overall, The Andersons Inc's working capital turnover ratio has shown fluctuations over the years, reflecting varying levels of efficiency in converting working capital into revenue. Further analysis would be needed to understand the underlying factors driving these changes and to assess the company's overall financial health and operational performance.
Peer comparison
Dec 31, 2024