Archrock Inc (AROC)

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	1,142,169	1,036,877	972,925	921,312	884,635	850,029	813,492	785,951	753,160	724,464	705,631	683,916	685,067	688,377	699,129	720,039	768,969	841,112	878,250	896,466
Total current assets	US$ in thousands	233,122	244,681	204,174	193,706	213,157	224,877	223,568	210,623	231,960	220,284	217,035	196,384	186,570	186,706	187,855	188,310	182,011	211,700	208,889	223,744
Total current liabilities	US$ in thousands	188,604	194,661	133,192	153,246	152,143	159,375	142,097	177,101	148,571	194,330	151,529	168,310	125,254	153,423	125,550	134,733	111,692	136,324	120,079	157,145
Working capital turnover		25.66	20.73	13.71	22.77	14.50	12.98	9.99	23.45	9.03	27.91	10.77	24.36	11.17	20.68	11.22	13.44	10.94	11.16	9.89	13.46

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,142,169K ÷ ($233,122K – $188,604K)
= 25.66

Archrock Inc's working capital turnover has shown significant fluctuations over the periods analyzed. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

From March 31, 2020, to June 30, 2020, the working capital turnover decreased from 13.46 to 9.89, indicating a decrease in the efficiency of working capital utilization. However, this trend reversed in the following quarters, with the ratio improving to 11.16 by September 30, 2020, and further to 13.44 by March 31, 2021.

During the subsequent periods, the working capital turnover ratio continued to fluctuate, reaching a peak of 27.91 on September 30, 2022, signaling a significant improvement in working capital efficiency. However, by December 31, 2022, the ratio decreased to 9.03, which could indicate potential inefficiencies in working capital management.

In the most recent periods analyzed, the trend seems to have stabilized, with the ratio hovering around 20.73 as of September 30, 2024, and improving to 25.66 by December 31, 2024. Overall, Archrock Inc's working capital turnover ratio has exhibited variability, suggesting the company's varying ability to efficiently convert working capital into sales revenue over time.