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.