Axalta Coating Systems Ltd (AXTA)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,184,100 | 4,884,400 | 4,416,200 | 3,737,600 | 4,482,200 |
| Total current assets | US$ in thousands | 2,821,300 | 2,692,700 | 2,575,600 | 2,925,900 | 2,573,400 |
| Total current liabilities | US$ in thousands | 1,427,500 | 1,384,700 | 1,334,900 | 1,180,900 | 1,072,900 |
| Working capital turnover | 3.72 | 3.73 | 3.56 | 2.14 | 2.99 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,184,100K ÷ ($2,821,300K – $1,427,500K)
= 3.72
The working capital turnover of Axalta Coating Systems Ltd has shown a fluctuating trend over the past five years. In 2023 and 2022, the working capital turnover ratios were 3.72 and 3.73, respectively, indicating a stable efficiency in utilizing working capital to generate revenue. This suggests that the company is able to efficiently manage its working capital to support its operations and generate sales.
However, in 2021, the working capital turnover ratio decreased to 3.56, which might indicate a potential decrease in the efficiency of converting working capital into sales. This could be a result of changes in the company's operations, management of inventory, or collection of receivables during that period.
In contrast, in 2020, the working capital turnover ratio significantly decreased to 2.14, reflecting a lower efficiency in utilizing working capital to generate revenue. This could be a red flag indicating potential liquidity issues or inefficiencies in managing working capital during that year.
In 2019, the working capital turnover improved to 2.99, reflecting better efficiency compared to 2020 but still lower than the levels seen in 2022 and 2023.
Overall, the trend in the working capital turnover ratios of Axalta Coating Systems Ltd suggests fluctuations in the company's ability to efficiently use its working capital to support its operations and generate sales. This analysis highlights the importance of continuously monitoring and managing working capital to maintain healthy liquidity and operational efficiency.
Peer comparison
Dec 31, 2023