Aptiv PLC (APTV)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,051,000 | 17,489,000 | 15,618,000 | 13,066,000 | 14,357,000 |
| Total current assets | US$ in thousands | 8,247,000 | 7,784,000 | 8,436,000 | 7,465,000 | 5,319,000 |
| Total current liabilities | US$ in thousands | 4,808,000 | 4,865,000 | 4,207,000 | 4,046,000 | 4,054,000 |
| Working capital turnover | 5.83 | 5.99 | 3.69 | 3.82 | 11.35 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,051,000K ÷ ($8,247,000K – $4,808,000K)
= 5.83
The working capital turnover for Aptiv PLC has fluctuated over the last five years, ranging from a high of 11.35 in 2019 to a low of 3.69 in 2021. This ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher turnover ratio suggests that the company is able to generate more sales with a given amount of working capital.
In 2019, Aptiv PLC exhibited a very high working capital turnover of 11.35, indicating an efficient use of working capital to generate sales. However, the ratio decreased significantly in 2021 to 3.69, which could be a cause for concern as it suggests a decrease in efficiency in utilizing working capital.
Although the ratio improved slightly in 2022 and 2023, it remained below the 2019 levels. Overall, Aptiv PLC has shown varying levels of efficiency in managing its working capital over the years, with room for improvement in optimizing the utilization of working capital to drive sales.
Peer comparison
Dec 31, 2023