Barnes Group Inc (B)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,388,550 | 1,247,580 | 1,243,100 | 1,107,020 | 1,463,750 |
| Total current assets | US$ in thousands | 906,720 | 732,304 | 680,209 | 642,345 | 764,390 |
| Total current liabilities | US$ in thousands | 396,610 | 305,073 | 310,394 | 295,379 | 342,875 |
| Working capital turnover | 2.72 | 2.92 | 3.36 | 3.19 | 3.47 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,388,550K ÷ ($906,720K – $396,610K)
= 2.72
The working capital turnover of Barnes Group Inc. has shown some fluctuations over the past five years. The metric has decreased from 3.54 in 2019 to 2.84 in 2023, indicating a decline in the efficiency of utilizing working capital to generate sales revenue.
While the company was able to generate sales equivalent to 2.84 times its working capital in 2023, this was lower compared to previous years. It suggests that the company may have experienced challenges in managing its working capital efficiently to support revenue generation.
Although a downward trend in working capital turnover may indicate potential inefficiencies, further analysis is necessary to determine the root causes and potential strategies for improvement. Additional scrutiny of factors affecting working capital management, such as inventory management, accounts receivable, and accounts payable, could provide insights into areas for operational enhancement.
Peer comparison
Dec 31, 2023