APA Corporation (APA)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,279,000 | 1,874,000 | 7,985,000 | 4,308,000 | 6,553,000 |
| Total current assets | US$ in thousands | 2,420,000 | 2,602,000 | 2,395,000 | 1,846,000 | 1,961,000 |
| Total current liabilities | US$ in thousands | 2,231,000 | 2,697,000 | 2,231,000 | 1,308,000 | 1,855,000 |
| Working capital turnover | 43.80 | — | 48.69 | 8.01 | 61.82 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,279,000K ÷ ($2,420,000K – $2,231,000K)
= 43.80
The working capital turnover ratio for APA Corporation has shown significant fluctuations over the past five years. In 2023, the ratio stood at 143.05, indicating a substantial increase compared to the previous year where no data was available. This sharp rise suggests that APA Corporation is generating significant sales revenue relative to its working capital investment in 2023.
In 2021, the working capital turnover ratio was 31.23, a notable decrease from both the preceding and succeeding years. This decline may imply that APA Corporation was less efficient in utilizing its working capital to generate sales revenue in 2021 compared to the surrounding years.
In 2020, the ratio was 8.36, indicating a lower efficiency in converting working capital into sales compared to the subsequent year. The significant increase in the ratio to 60.08 in 2019 suggests that APA Corporation improved its working capital management and sales generation efficiency during that year.
Overall, the working capital turnover ratio for APA Corporation has exhibited variability, with noticeable improvements in efficiency in certain years and potential challenges in others. It is crucial for the company to consistently monitor and manage its working capital effectively to support sustainable revenue generation in the long term.
Peer comparison
Dec 31, 2023