AdvanSix Inc (ASIX)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,525,604	1,550,528	1,707,779	1,864,760	1,943,802	1,963,180	1,930,418	1,783,754	1,680,358	1,596,651	1,431,259	1,226,091	1,153,999	1,140,377	1,171,063	1,285,126	1,296,943	1,356,927	1,414,965	1,470,226
Total current assets	US$ in thousands	419,804	413,731	411,155	395,168	440,928	398,356	435,913	412,463	349,854	333,082	324,750	310,077	333,503	308,563	349,919	316,464	290,537	290,252	293,313	268,885
Total current liabilities	US$ in thousands	358,918	307,954	300,143	314,960	393,492	350,656	356,344	307,252	309,822	306,140	269,105	259,482	287,037	253,162	226,324	268,680	291,726	286,668	253,727	256,702
Working capital turnover		25.06	14.66	15.38	23.25	40.98	41.16	24.26	16.95	41.98	59.26	25.72	24.23	24.84	20.58	9.48	26.89	—	378.61	35.74	120.68

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,525,604K ÷ ($419,804K – $358,918K)
= 25.06

AdvanSix Inc's working capital turnover has experienced fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

In Q4 2023, the working capital turnover ratio was 25.19, indicating that AdvanSix generated $25.19 in sales for each dollar of working capital invested. This represents a significant increase from the previous quarter's ratio of 14.71 in Q3 2023.

Looking at historical data, it is observed that Q4 2023's ratio is higher when compared to Q2 and Q1 2023, but still lower than the exceptionally high ratios in Q4 2022 and Q3 2022. During Q4 2022 and Q3 2022, the company achieved working capital turnover ratios of 41.02 and 41.21, respectively, suggesting a very efficient utilization of working capital during those periods.

Overall, AdvanSix Inc's working capital turnover has shown variability, with Q4 2023 demonstrating a positive uptrend following a dip in the previous quarter. The company should continue to focus on optimizing its working capital management to improve operational efficiency and profitability.