Aptiv PLC (APTV)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,713,000 | 20,051,000 | 17,489,000 | 15,618,000 | 13,066,000 |
| Total current assets | US$ in thousands | 7,826,000 | 8,247,000 | 7,784,000 | 8,436,000 | 7,465,000 |
| Total current liabilities | US$ in thousands | 5,131,000 | 4,808,000 | 4,865,000 | 4,207,000 | 4,046,000 |
| Working capital turnover | 7.31 | 5.83 | 5.99 | 3.69 | 3.82 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,713,000K ÷ ($7,826,000K – $5,131,000K)
= 7.31
Based on the provided data on Aptiv PLC's working capital turnover, we observe a generally increasing trend over the years, indicating an improvement in the efficiency by which the company is utilizing its working capital. The working capital turnover ratio measures how effectively a company is generating revenue from its working capital.
From 2020 to 2021, there was a slight decrease in the working capital turnover from 3.82 to 3.69, suggesting a small decline in efficiency in generating sales relative to its working capital. However, the following years saw a remarkable improvement in efficiency, with the ratio increasing to 5.99 in 2022, 5.83 in 2023, and 7.31 in 2024.
The significant improvement in the working capital turnover ratio from 2021 onwards indicates that Aptiv PLC has been effectively managing its working capital to support its operations and generate sales. A higher working capital turnover ratio generally signifies better liquidity management and more effective utilization of resources to drive revenue growth.
Overall, the increasing trend in Aptiv PLC's working capital turnover reflects positively on the company's financial efficiency and management of working capital resources to support its business operations. Keep in mind that a high working capital turnover ratio may also indicate a more aggressive sales strategy, so further analysis is necessary to understand the underlying reasons behind this trend.
Peer comparison
Dec 31, 2024