Axalta Coating Systems Ltd (AXTA)
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 | 5,184,100 | 5,123,500 | 5,053,200 | 4,994,200 | 4,884,400 | 4,784,900 | 4,634,800 | 4,526,700 | 4,416,200 | 4,353,500 | 4,291,800 | 3,817,700 | 3,737,600 | 3,761,500 | 3,841,600 | 4,346,400 | 4,482,200 | 4,549,600 | 4,588,600 | 4,643,300 |
| Total current assets | US$ in thousands | 2,821,300 | 2,785,800 | 2,689,600 | 2,623,900 | 2,692,700 | 2,668,400 | 2,578,000 | 2,516,300 | 2,575,600 | 2,513,800 | 3,048,200 | 2,890,800 | 2,925,900 | 2,850,300 | 2,480,200 | 2,189,300 | 2,573,400 | 2,433,100 | 2,312,100 | 2,261,600 |
| Total current liabilities | US$ in thousands | 1,427,500 | 1,358,300 | 1,329,200 | 1,279,700 | 1,384,700 | 1,349,700 | 1,333,400 | 1,345,000 | 1,334,900 | 1,276,600 | 1,216,200 | 1,190,100 | 1,180,900 | 1,065,200 | 860,900 | 1,007,200 | 1,072,900 | 1,034,900 | 996,800 | 1,021,500 |
| Working capital turnover | 3.72 | 3.59 | 3.71 | 3.72 | 3.73 | 3.63 | 3.72 | 3.86 | 3.56 | 3.52 | 2.34 | 2.24 | 2.14 | 2.11 | 2.37 | 3.68 | 2.99 | 3.25 | 3.49 | 3.74 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,184,100K ÷ ($2,821,300K – $1,427,500K)
= 3.72
Axalta Coating Systems Ltd's working capital turnover ratio has been relatively stable over the past eight quarters, ranging from 3.59 to 3.86. This ratio measures the efficiency of the company in utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is able to generate more sales with less investment in working capital.
In this case, Axalta's working capital turnover ratio has been consistently above 3, indicating that the company is efficient in managing its working capital to support its operations and generate sales. Despite minor fluctuations, the overall trend suggests that Axalta has been able to maintain a consistent level of efficiency in utilizing its working capital to drive revenue growth.
It is important for investors and stakeholders to monitor changes in the working capital turnover ratio over time to assess the company's operational efficiency and financial performance. Overall, based on the data provided, Axalta Coating Systems Ltd appears to be effectively managing its working capital to support its business operations and generate revenue.
Peer comparison
Dec 31, 2023