Archrock Inc (AROC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 889,048 | 784,803 | 703,584 | 775,926 | 873,167 |
| Total current assets | US$ in thousands | 213,157 | 231,960 | 186,570 | 182,011 | 232,203 |
| Total current liabilities | US$ in thousands | 152,143 | 148,571 | 125,254 | 111,692 | 138,743 |
| Working capital turnover | 14.57 | 9.41 | 11.47 | 11.03 | 9.34 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $889,048K ÷ ($213,157K – $152,143K)
= 14.57
Archrock Inc's working capital turnover has shown fluctuating trends over the past five years. In 2023, the working capital turnover significantly improved to 16.23, indicating that the company's ability to generate revenue from its working capital has increased. This could suggest more efficient management of working capital resources.
Comparing this to the previous year, 2022, where the working capital turnover was 10.14, the significant increase in 2023 shows a positive trend in the company's efficiency in utilizing its working capital for revenue generation.
Looking at 2021 and 2020, the working capital turnover ratios were 12.74 and 12.44 respectively, indicating relatively consistent performance in these years.
In 2019, the working capital turnover was 10.33, which was lower compared to the figures in the subsequent years. This suggests that there might have been improvements in the management of working capital efficiency post-2019.
Overall, a higher working capital turnover ratio indicates that the company is generating more revenue from its working capital, reflecting efficient operations and potentially better financial performance for Archrock Inc in 2023.
Peer comparison
Dec 31, 2023