American Axle & Manufacturing (AXL)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	6,082,900	5,993,300	5,982,700	5,857,600	5,803,400	5,698,900	5,340,500	5,177,100	5,158,900	5,356,300	5,579,500	4,808,200	4,722,100	4,702,800	4,965,800	6,209,400	6,644,200	6,735,600	6,934,600	7,131,200
Total current assets	US$ in thousands	2,006,600	2,139,200	2,109,600	2,004,500	1,993,400	2,055,500	2,055,800	2,040,900	1,856,000	1,822,000	1,950,500	1,982,400	1,877,000	1,912,600	1,961,500	2,043,100	1,857,800	2,198,200	1,976,700	2,038,900
Total current liabilities	US$ in thousands	1,201,600	1,248,700	1,233,600	1,198,000	1,199,300	1,214,300	1,213,700	1,153,700	1,039,900	1,003,200	1,152,100	1,042,100	979,300	1,024,300	1,260,300	1,218,700	1,026,400	1,237,100	1,267,100	1,391,500
Working capital turnover		7.56	6.73	6.83	7.26	7.31	6.77	6.34	5.84	6.32	6.54	6.99	5.11	5.26	5.29	7.08	7.53	7.99	7.01	9.77	11.02

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,082,900K ÷ ($2,006,600K – $1,201,600K)
= 7.56

American Axle & Manufacturing Holdings Inc experienced fluctuations in its working capital turnover ratio over the past eight quarters. The ratio indicates the company's efficiency in utilizing its working capital to generate sales revenue. A high turnover ratio suggests that the company effectively manages its working capital to support sales activities.

In Q4 2023, the working capital turnover ratio was 7.55, which was higher compared to the previous quarter. This increase indicates an improvement in the efficiency of converting working capital into sales. Similarly, in Q1 2023 and Q4 2022, the company also reported relatively high turnover ratios of 7.27 and 7.31, respectively.

Overall, American Axle & Manufacturing Holdings Inc has maintained a consistently high working capital turnover ratio, with values generally above 6. This suggests that the company efficiently utilizes its working capital to support its operations and drive sales growth. The increasing trend in the turnover ratio over the past quarters reflects positive management of working capital and operational efficiency within the organization.