Smith AO Corporation (AOS)
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 | 3,817,100 | 3,891,700 | 3,924,200 | 3,856,200 | 3,840,800 | 3,786,500 | 3,723,200 | 3,730,700 | 3,744,500 | 3,805,900 | 3,847,700 | 3,742,800 | 3,534,600 | 3,375,000 | 3,219,800 | 3,022,300 | 2,889,000 | 2,805,400 | 2,772,100 | 2,872,700 |
| Total current assets | US$ in thousands | 1,392,900 | 1,412,500 | 1,481,300 | 1,461,500 | 1,500,300 | 1,504,500 | 1,561,300 | 1,643,800 | 1,633,700 | 1,569,600 | 1,631,200 | 1,721,400 | 1,752,600 | 1,738,100 | 1,585,700 | 1,558,200 | 1,618,000 | 1,430,300 | 1,444,400 | 1,442,500 |
| Total current liabilities | US$ in thousands | 897,200 | 844,200 | 872,400 | 883,400 | 945,300 | 895,600 | 860,700 | 895,700 | 934,200 | 900,900 | 928,300 | 1,002,100 | 1,118,800 | 982,600 | 907,000 | 836,100 | 886,300 | 805,900 | 735,400 | 699,100 |
| Working capital turnover | 7.70 | 6.85 | 6.44 | 6.67 | 6.92 | 6.22 | 5.31 | 4.99 | 5.35 | 5.69 | 5.47 | 5.20 | 5.58 | 4.47 | 4.74 | 4.19 | 3.95 | 4.49 | 3.91 | 3.86 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,817,100K ÷ ($1,392,900K – $897,200K)
= 7.70
The working capital turnover ratio for Smith AO Corporation has shown a generally increasing trend from March 31, 2020, to December 31, 2024. The ratio increased from 3.86 on March 31, 2020, to 7.70 on December 31, 2024. This indicates that the company has been able to efficiently utilize its working capital to generate revenue over this period.
The ratio peaked at 7.70 on December 31, 2024, suggesting a significant improvement in working capital management efficiency. It means that for every dollar of working capital invested, the company generated $7.70 of revenue.
However, it is important to note that the ratio experienced fluctuations throughout the period, which could be due to changes in the company's operating cycle, inventory management, or accounts receivable and accounts payable policies.
Overall, the increasing trend in the working capital turnover ratio indicates that Smith AO Corporation has been able to effectively manage its working capital to support its revenue generation activities over the analyzed period.
Peer comparison
Dec 31, 2024