American Axle & Manufacturing (AXL)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,079,500 | 5,802,400 | 5,156,600 | 4,710,800 | 6,530,900 |
| Total current assets | US$ in thousands | 2,006,600 | 1,993,400 | 1,856,000 | 1,877,000 | 1,857,800 |
| Total current liabilities | US$ in thousands | 1,201,600 | 1,199,300 | 1,039,900 | 979,300 | 1,026,400 |
| Working capital turnover | 7.55 | 7.31 | 6.32 | 5.25 | 7.86 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,079,500K ÷ ($2,006,600K – $1,201,600K)
= 7.55
American Axle & Manufacturing Holdings Inc's working capital turnover has fluctuated over the past five years, ranging from a low of 5.25 in 2020 to a high of 7.86 in 2019. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio suggests that the company is able to generate more sales for each dollar of working capital invested.
The trend for American Axle & Manufacturing Holdings Inc's working capital turnover has been generally positive, with an increasing trend from 2018 to 2019, followed by a slight decrease in 2020 before picking up again in 2021 and 2022. The company's working capital turnover ratio of above 7 indicates that it is effectively using its current assets to support its revenue generation activities. This suggests that the company is managing its working capital efficiently and effectively.
Overall, the analysis of American Axle & Manufacturing Holdings Inc's working capital turnover indicates that the company has been able to make effective use of its working capital to support its operations and generate revenue over the past five years.
Peer comparison
Dec 31, 2023