APA Corporation (APA)
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 | 9,737,000 | 9,192,000 | 8,969,000 | 8,222,000 | 8,279,000 | 8,584,000 | 9,163,000 | 10,414,000 | 11,075,000 | 10,902,000 | 10,074,000 | 8,783,000 | 7,985,000 | 6,905,000 | 5,966,000 | 4,962,000 | 4,435,000 | 4,841,000 | 5,159,000 | 6,005,000 |
| Total current assets | US$ in thousands | 3,404,000 | 3,620,000 | 2,918,000 | 2,506,000 | 2,462,000 | 2,800,000 | 2,599,000 | 2,732,000 | 2,708,000 | 3,135,000 | 3,083,000 | 2,593,000 | 2,380,000 | 2,181,000 | 2,945,000 | 2,345,000 | 1,846,000 | 1,719,000 | 1,658,000 | 1,908,000 |
| Total current liabilities | US$ in thousands | 2,955,000 | 2,925,000 | 2,889,000 | 2,152,000 | 2,404,000 | 2,635,000 | 2,630,000 | 2,454,000 | 2,916,000 | 2,984,000 | 2,813,000 | 2,114,000 | 2,117,000 | 1,839,000 | 1,773,000 | 1,338,000 | 1,308,000 | 1,382,000 | 1,710,000 | 2,025,000 |
| Working capital turnover | 21.69 | 13.23 | 309.28 | 23.23 | 142.74 | 52.02 | — | 37.46 | — | 72.20 | 37.31 | 18.34 | 30.36 | 20.19 | 5.09 | 4.93 | 8.24 | 14.36 | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,737,000K ÷ ($3,404,000K – $2,955,000K)
= 21.69
Working capital turnover is a financial ratio that measures how efficiently a company is able to utilize its working capital to generate sales revenue. In the case of APA Corporation, the working capital turnover ratio has shown fluctuations over the years.
From September 2020 to June 2022, the working capital turnover ratio increased steadily, indicating an improvement in the company's ability to efficiently convert working capital into sales. The ratio peaked at an impressive 72.20 on September 30, 2022, suggesting a strong performance in managing working capital.
However, there were some periods of decline in the ratio, such as in March 2021 and December 2023, which may indicate challenges in optimizing working capital efficiency during those periods.
The ratio spiked significantly on December 31, 2023, reaching 142.74, which may be an anomaly or could indicate exceptional efficiency in utilizing working capital to drive sales revenue during that quarter.
Overall, the working capital turnover ratio for APA Corporation has shown variability over time, with some periods of improvement and others of decline. It is important for the company to closely monitor this ratio to ensure optimal management of working capital for sustained business success.
Peer comparison
Dec 31, 2024