AdvanSix Inc (ASIX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,524,830	1,942,860	1,679,600	1,150,210	1,290,570
Total current assets	US$ in thousands	419,804	440,928	349,854	333,503	290,537
Total current liabilities	US$ in thousands	358,918	393,492	309,822	287,037	291,726
Working capital turnover		25.04	40.96	41.96	24.75	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,524,830K ÷ ($419,804K – $358,918K)
= 25.04

The working capital turnover of AdvanSix Inc has exhibited fluctuations over the past five years. In 2023, the working capital turnover stood at 25.19, reflecting a decrease from the previous year's ratio of 41.02. Despite this decline, the current ratio indicates that the company is generating $25.19 in revenue for every dollar invested in working capital. This suggests that the company is efficient at managing its working capital to generate sales. It is important to monitor trends in working capital turnover over time to assess the company's operational efficiency and financial health effectively.