Brunswick Corporation (BC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,401,400 | 6,812,200 | 5,846,200 | 4,347,500 | 4,108,400 |
| Total current assets | US$ in thousands | 2,509,700 | 2,695,200 | 2,124,600 | 1,670,500 | 1,525,800 |
| Total current liabilities | US$ in thousands | 1,752,100 | 1,489,900 | 1,442,200 | 1,079,200 | 944,400 |
| Working capital turnover | 8.45 | 5.65 | 8.57 | 7.35 | 7.07 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,401,400K ÷ ($2,509,700K – $1,752,100K)
= 8.45
Based on the data provided for Brunswick Corp., the working capital turnover ratio has fluctuated over the past five years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In 2023, the working capital turnover ratio was 8.45, indicating that the company generated $8.45 in revenue for every dollar of working capital invested. This represents a significant improvement from the previous year, where the ratio was 5.65.
Comparing the current ratio to previous years, it is clear that Brunswick Corp. has shown variability in their efficiency in utilizing working capital. In 2021, the ratio was 8.57, reflecting a similar trend to 2023, while in 2020 and 2019, the ratios were slightly lower at 7.35 and 7.07, respectively.
It is imperative to further analyze the reasons behind these fluctuations in the working capital turnover ratio to understand the company's internal efficiency in managing its working capital. Additionally, considering industry benchmarks and trends can provide further insight into Brunswick Corp.'s performance in this aspect.
Peer comparison
Dec 31, 2023