American Axle & Manufacturing (AXL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,124,900 | 6,079,500 | 5,802,400 | 5,156,600 | 4,710,800 |
| Total current assets | US$ in thousands | 1,914,800 | 2,006,600 | 1,993,400 | 1,856,000 | 1,877,000 |
| Total current liabilities | US$ in thousands | 1,175,200 | 1,201,600 | 1,199,300 | 1,039,900 | 979,300 |
| Working capital turnover | 8.28 | 7.55 | 7.31 | 6.32 | 5.25 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,124,900K ÷ ($1,914,800K – $1,175,200K)
= 8.28
The working capital turnover ratio for American Axle & Manufacturing has shown a positive trend over the past five years, increasing from 5.25 in December 31, 2020, to 8.28 in December 31, 2024. This indicates that the company has been more efficient in utilizing its working capital to generate sales revenue.
A higher working capital turnover ratio suggests that the company is managing its working capital effectively, potentially through better inventory management, accounts receivable collection, and accounts payable payment strategies. This improvement may indicate enhanced operational efficiency and liquidity management within the company.
The consistent upward trend in the working capital turnover ratio reflects positively on American Axle & Manufacturing's ability to convert its current assets and liabilities into sales revenue efficiently. It indicates that the company is utilizing its working capital resources more effectively to support its business operations and generate revenue, which can be a key indicator of financial health and operational efficiency.
Peer comparison
Dec 31, 2024