Avient Corp (AVNT)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	3,240,400	3,212,900	3,151,400	3,126,100	3,142,800	3,214,200	3,283,800	3,761,800	4,209,900	4,621,000	5,017,500	4,950,300	4,818,800	4,614,300	4,319,000	3,692,900	3,242,100	2,903,700	2,684,500	2,979,200
Total current assets	US$ in thousands	1,422,100	1,457,400	1,459,100	1,390,700	1,407,600	1,364,300	1,510,700	1,564,300	1,569,700	1,988,300	2,020,100	1,926,900	1,832,700	1,848,900	1,858,100	1,716,400	1,583,500	1,497,800	2,583,400	1,990,600
Total current liabilities	US$ in thousands	756,100	894,500	1,498,200	732,100	773,600	727,100	776,500	837,200	869,400	1,555,600	1,570,600	1,556,300	946,300	961,800	934,300	863,600	804,600	768,900	624,300	687,800
Working capital turnover		4.87	5.71	—	4.75	4.96	5.04	4.47	5.17	6.01	10.68	11.16	13.36	5.44	5.20	4.68	4.33	4.16	3.98	1.37	2.29

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,240,400K ÷ ($1,422,100K – $756,100K)
= 4.87

The working capital turnover ratio for Avient Corp has been fluctuating over the past few years.

From March 31, 2020, to June 30, 2021, the ratio steadily increased from 2.29 to 4.68, indicating an improvement in the company's efficiency in utilizing its working capital to generate revenue.

However, from September 30, 2021, to December 31, 2022, the ratio experienced a decline, dropping to 6.01. This could suggest a decrease in the company's ability to efficiently convert working capital into sales during this period.

The ratio then fluctuated between 4.47 to 5.71 over the next few quarters up to September 30, 2024, showing some stability in the company's working capital turnover.

Overall, the trend in Avient Corp's working capital turnover ratio indicates both periods of efficiency and inefficiency in managing its working capital to generate revenues over the analyzed period.