Avient Corp (AVNT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,240,400 | 3,142,800 | 3,396,900 | 4,818,800 | 3,242,100 |
| Total current assets | US$ in thousands | 1,422,100 | 1,407,600 | 1,569,700 | 1,832,700 | 1,583,500 |
| Total current liabilities | US$ in thousands | 756,100 | 773,600 | 869,400 | 946,300 | 804,600 |
| Working capital turnover | 4.87 | 4.96 | 4.85 | 5.44 | 4.16 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,240,400K ÷ ($1,422,100K – $756,100K)
= 4.87
The working capital turnover for Avient Corp has shown a generally positive trend over the five-year period from 2020 to 2024. Starting at 4.16 in 2020, the ratio increased to 5.44 in 2021, indicating an improvement in the efficiency of utilizing working capital to generate revenue.
Although there was a slight decrease to 4.85 in 2022, the ratio remained relatively stable at around 4.9 for the subsequent years of 2023 and 2024. This suggests that Avient Corp has been able to effectively manage its working capital to support its operations and generate sales throughout the period.
Overall, the increasing trend in working capital turnover signifies that Avient Corp has been efficient in utilizing its working capital to drive revenue growth, indicating a positive operational performance in managing its current assets and liabilities.
Peer comparison
Dec 31, 2024