AdvanSix Inc (ASIX)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,517,560	1,533,600	1,945,640	1,684,620	1,157,920
Total current assets	US$ in thousands	387,116	419,804	440,928	349,854	333,503
Total current liabilities	US$ in thousands	357,103	358,918	393,492	309,822	287,037
Working capital turnover		50.56	25.19	41.02	42.08	24.92

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,517,560K ÷ ($387,116K – $357,103K)
= 50.56

The working capital turnover ratio for AdvanSix Inc has shown fluctuations over the past five years. In December 2020, the ratio stood at 24.92, indicating that the company was able to generate 24.92 times revenues from its working capital during that period. Subsequently, the ratio increased to 42.08 in December 2021, suggesting a more efficient utilization of working capital to generate sales. In the following year, December 2022, the ratio remained high at 41.02, showing continued effectiveness in managing working capital.

However, in December 2023, there was a decrease in the working capital turnover ratio to 25.19, implying a slight reduction in the company's ability to convert working capital into revenue efficiently. Nonetheless, in December 2024, the ratio surged to 50.56, indicating a significant improvement and a more efficient utilization of working capital to generate sales during that period.

Overall, the trend in AdvanSix Inc's working capital turnover reflects fluctuations, with notable peaks and troughs over the five-year period analyzed. This could suggest variations in the company's working capital management efficiency and its ability to generate revenue from the resources deployed in its operations.