Astec Industries Inc (ASTE)
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 | 1,332,400 | 1,346,100 | 1,360,800 | 1,330,300 | 1,271,800 | 1,189,500 | 1,141,500 | 1,101,900 | 1,095,400 | 1,068,200 | 1,032,508 | 1,019,687 | 1,024,892 | 1,069,192 | 1,093,524 | 1,132,663 | 1,168,039 | 1,201,647 | 1,202,450 | 1,170,492 |
| Total current assets | US$ in thousands | 719,500 | 746,300 | 675,900 | 680,400 | 696,400 | 649,600 | 661,500 | 675,700 | 636,000 | 644,800 | 634,500 | 592,000 | 565,800 | 533,158 | 530,405 | 534,182 | 506,300 | 529,884 | 557,535 | 576,073 |
| Total current liabilities | US$ in thousands | 299,000 | 282,200 | 264,100 | 272,000 | 274,000 | 283,900 | 273,400 | 256,500 | 223,300 | 212,000 | 207,800 | 185,100 | 170,300 | 161,239 | 144,027 | 168,890 | 172,800 | 173,081 | 173,936 | 190,793 |
| Working capital turnover | 3.17 | 2.90 | 3.30 | 3.26 | 3.01 | 3.25 | 2.94 | 2.63 | 2.65 | 2.47 | 2.42 | 2.51 | 2.59 | 2.87 | 2.83 | 3.10 | 3.50 | 3.37 | 3.13 | 3.04 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (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 some fluctuations over the past 8 quarters.
In Q4 2023, the working capital turnover ratio was 3.18, a slight increase from the previous quarter's ratio of 2.91 in Q3 2023. This suggests that the company was able to generate $3.18 in net sales for every dollar of working capital invested in that quarter.
Looking at the trend over the past year, the working capital turnover ratio has generally been on an upward trajectory, reaching a peak of 3.31 in Q2 2023 before slightly decreasing in the following quarter. This improvement in efficiency indicates that the company has been managing its working capital more effectively to support its sales activities.
Comparing the latest ratio to the same quarter in the previous year, the Q4 2023 ratio of 3.18 is higher than the ratio of 3.02 in Q4 2022, signaling an enhancement in the company's utilization of working capital to drive revenue generation.
Overall, the increasing trend in the working capital turnover ratio reflects Astec Industries Inc.'s improving ability to efficiently utilize its working capital resources to generate sales revenue, which is a positive indicator of the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023