Astec Industries Inc (ASTE)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,332,400 | 1,271,800 | 1,095,400 | 1,030,400 | 1,167,370 |
| Total current assets | US$ in thousands | 719,500 | 696,400 | 636,000 | 565,800 | 506,300 |
| Total current liabilities | US$ in thousands | 299,000 | 274,000 | 223,300 | 170,300 | 172,800 |
| Working capital turnover | 3.17 | 3.01 | 2.65 | 2.61 | 3.50 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,332,400K ÷ ($719,500K – $299,000K)
= 3.17
The working capital turnover ratio for Astec Industries Inc. has shown varying trends over the past five years.
In 2023, the company's working capital turnover ratio improved to 3.18 from 3.02 in 2022, indicating that the company generated $3.18 in net sales for every dollar of working capital invested during the year. This increase suggests that Astec Industries managed its working capital more efficiently in 2023.
Comparing to previous years, the working capital turnover ratio was lower in 2021 and 2020 at 2.63 and 2.59 respectively, indicating less efficient utilization of working capital to generate sales during those years.
However, in 2019, the company exhibited the highest level of efficiency in utilizing working capital with a turnover ratio of 3.51, suggesting strong operational performance compared to the other years in the analysis.
Overall, the fluctuating trend in the working capital turnover ratio for Astec Industries Inc. indicates varying efficiency in managing its working capital to generate sales over the past five years. The company's management may need to continue monitoring and optimizing its working capital levels to improve operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2023