American Axle & Manufacturing (AXL)

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 6,124,900 6,207,100 6,254,100 6,192,500 6,079,500 6,009,200 5,992,500 5,860,100 5,802,400 5,644,800 5,322,700 5,167,700 5,156,600 5,359,400 5,560,400 4,792,400 4,710,800 4,702,900 4,966,200 6,155,200
Total current assets US$ in thousands 1,914,800 2,135,500 2,105,400 2,093,200 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
Total current liabilities US$ in thousands 1,175,200 1,294,200 1,255,100 1,235,600 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
Working capital turnover 8.28 7.38 7.36 7.22 7.55 6.75 6.84 7.27 7.31 6.71 6.32 5.82 6.32 6.55 6.96 5.10 5.25 5.29 7.08 7.47

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 fluctuated over the period of observation. It started at 7.47 on March 31, 2020, reaching its peak at 8.28 on December 31, 2024. The ratio indicates that American Axle & Manufacturing has been able to efficiently utilize its working capital to generate revenue, with a higher ratio suggesting better efficiency in utilizing current assets and liabilities to support sales. Despite some fluctuations, the company has generally maintained a healthy working capital turnover ratio, reflecting its ability to effectively manage its working capital and operate efficiently.