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.
Peer comparison
Dec 31, 2023