Allegheny Technologies Incorporated (ATI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,362,100 | 7,544,800 | 3,836,000 | 2,799,800 | 2,982,100 |
| Total current assets | US$ in thousands | 2,945,000 | 2,737,700 | 2,476,400 | 2,306,700 | 2,066,000 |
| Total current liabilities | US$ in thousands | 1,208,500 | 977,100 | 963,900 | 856,400 | 653,300 |
| Working capital turnover | 2.51 | 4.29 | 2.54 | 1.93 | 2.11 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,362,100K ÷ ($2,945,000K – $1,208,500K)
= 2.51
Analyzing the working capital turnover of Allegheny Technologies Incorporated over the past five years, we observe fluctuations in the efficiency of the company in utilizing its working capital.
In December 31, 2020, the working capital turnover stood at 2.11, indicating that the company generated $2.11 in revenue for every dollar of working capital invested.
However, by the end of December 31, 2021, the working capital turnover declined to 1.93, suggesting a decrease in the company's ability to efficiently utilize its working capital to generate revenue.
There was a notable improvement in efficiency by December 31, 2022, with the working capital turnover reaching 2.54, showing an uptick in the company's ability to generate revenue relative to its working capital.
By December 31, 2023, the working capital turnover experienced a significant surge to 4.29, indicating a substantial enhancement in the efficiency of working capital utilization and revenue generation for the company.
In the most recent period of December 31, 2024, the working capital turnover slightly decreased to 2.51, still reflecting a relatively high level of efficiency in converting working capital into revenue.
Overall, the trend in working capital turnover for Allegheny Technologies Incorporated demonstrates varying degrees of effectiveness in utilizing working capital to generate revenue over the analyzed period.