Axalta Coating Systems Ltd (AXTA)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,276,000 | 5,184,000 | 4,884,400 | 4,416,200 | 3,737,600 |
| Total current assets | US$ in thousands | 2,723,000 | 2,821,000 | 2,692,700 | 2,575,600 | 2,925,900 |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,428,000 | 1,384,700 | 1,334,900 | 1,180,900 |
| Working capital turnover | 3.85 | 3.72 | 3.73 | 3.56 | 2.14 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,276,000K ÷ ($2,723,000K – $1,354,000K)
= 3.85
The working capital turnover for Axalta Coating Systems Ltd has shown a consistent improvement over the past five years. In December 2020, the working capital turnover was 2.14, indicating that the company generated $2.14 in revenue for every dollar of working capital invested.
By December 2021, this ratio had increased to 3.56, reflecting a more efficient utilization of working capital to generate revenue. This positive trend continued, with the working capital turnover reaching 3.73 in December 2022, 3.72 in December 2023, and finally peaking at 3.85 in December 2024.
A higher working capital turnover ratio generally indicates that a company is managing its working capital more effectively, which can lead to improved liquidity and operational efficiency. This upward trend suggests that Axalta Coating Systems Ltd has been successful in optimizing its working capital management over the years, potentially resulting in better financial performance and profitability.
Peer comparison
Dec 31, 2024