Astec Industries Inc (ASTE)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,305,100 | 1,338,200 | 1,274,500 | 1,097,200 | 1,024,400 |
| Total current assets | US$ in thousands | 722,800 | 719,500 | 696,400 | 641,700 | 565,800 |
| Total current liabilities | US$ in thousands | 271,700 | 299,000 | 274,000 | 225,300 | 170,300 |
| Working capital turnover | 2.89 | 3.18 | 3.02 | 2.63 | 2.59 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,305,100K ÷ ($722,800K – $271,700K)
= 2.89
Astec Industries Inc's working capital turnover has shown a positive trend over the years, reflecting an improvement in the company's efficiency in managing its working capital. The ratio has increased from 2.59 in December 31, 2020, to 2.63 in December 31, 2021, further rising to 3.02 by December 31, 2022, and reaching 3.18 by December 31, 2023. This indicates that the company is generating sales revenue more efficiently relative to its investment in working capital.
However, there was a slight dip in the working capital turnover to 2.89 by December 31, 2024. This decrease could imply potential challenges in managing working capital efficiently during that period. It is important for the company to closely monitor its working capital components to ensure optimal utilization and to sustain or improve the turnover ratio in the future. Overall, the increasing trend in working capital turnover is a positive indicator of Astec Industries Inc's ability to efficiently utilize its working capital resources.
Peer comparison
Dec 31, 2024