Axalta Coating Systems Ltd (AXTA)
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 | 5,276,000 | 5,262,300 | 5,251,300 | 5,194,300 | 5,184,300 | 5,123,700 | 5,053,400 | 4,994,300 | 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 |
| Total current assets | US$ in thousands | 2,723,000 | 2,838,000 | 3,014,000 | 2,760,000 | 2,821,000 | 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 |
| Total current liabilities | US$ in thousands | 1,354,000 | 1,422,000 | 1,335,000 | 1,332,000 | 1,428,000 | 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 |
| Working capital turnover | 3.85 | 3.72 | 3.13 | 3.64 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,276,000K ÷ ($2,723,000K – $1,354,000K)
= 3.85
Axalta Coating Systems Ltd's working capital turnover has shown fluctuations over the years based on the provided data. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue.
From March 31, 2020, to June 30, 2020, there was a decrease in the working capital turnover from 3.68 to 2.37, which indicates a potential decrease in efficiency in utilizing working capital to support sales.
However, from September 30, 2020, to December 31, 2020, there was a slight increase in the ratio to 2.14, suggesting improved working capital efficiency. This trend continued until March 31, 2021, when the ratio increased further to 2.24.
From June 30, 2021, to September 30, 2021, there was a significant increase in the working capital turnover ratio to 3.52, indicating a notable improvement in working capital management efficiency.
The ratio continued to show an increasing trend from September 30, 2021, reaching its peak at 3.86 on March 31, 2022, suggesting improved efficiency in utilizing working capital to generate sales.
From June 30, 2022, to September 30, 2022, there was a slight decrease in the ratio to 3.63, followed by fluctuations until December 31, 2024, where the ratio stood at 3.85.
Overall, the working capital turnover ratio for Axalta Coating Systems Ltd has shown variations over the years, with periods of improvement in working capital efficiency. It is important for the company to continue monitoring and managing its working capital effectively to support its sales operations.
Peer comparison
Dec 31, 2024