Boise Cascad Llc (BCC)
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 | 6,724,290 | 6,801,070 | 6,921,790 | 6,939,340 | 6,838,250 | 6,822,300 | 7,142,510 | 7,605,360 | 8,387,310 | 8,541,180 | 8,265,980 | 8,431,070 | 7,926,110 | 7,616,160 | 7,326,020 | 6,125,620 | 5,474,830 | 5,104,310 | 4,784,520 | 4,771,840 |
| Total current assets | US$ in thousands | 1,886,070 | 2,012,170 | 2,267,810 | 2,216,670 | 2,056,810 | 2,466,240 | 2,298,640 | 2,191,720 | 2,064,050 | 2,181,440 | 2,448,460 | 2,422,900 | 1,885,880 | 1,937,990 | 2,007,430 | 1,632,860 | 1,308,860 | 1,413,520 | 1,193,140 | 1,105,390 |
| Total current liabilities | US$ in thousands | 564,016 | 643,242 | 691,506 | 684,726 | 594,116 | 694,724 | 667,344 | 580,148 | 545,828 | 739,463 | 769,077 | 880,163 | 640,746 | 700,295 | 854,257 | 696,514 | 524,002 | 676,388 | 485,287 | 438,936 |
| Working capital turnover | 5.09 | 4.97 | 4.39 | 4.53 | 4.68 | 3.85 | 4.38 | 4.72 | 5.52 | 5.92 | 4.92 | 5.47 | 6.37 | 6.15 | 6.35 | 6.54 | 6.98 | 6.92 | 6.76 | 7.16 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,724,290K ÷ ($1,886,070K – $564,016K)
= 5.09
Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales. Boise Cascade Llc's working capital turnover has shown a declining trend over the period from March 31, 2020, to December 31, 2024, starting at 7.16 and decreasing to 5.09.
The decreasing trend in working capital turnover indicates that the company is becoming less efficient in utilizing its working capital to support its sales operations. This could be a red flag as it may suggest potential issues with inventory management, accounts receivable collection, or accounts payable management.
A lower working capital turnover ratio may indicate that Boise Cascade Llc is taking longer to turn its working capital into sales revenue, potentially tying up resources in non-productive assets. This could lead to a strain on liquidity and profitability if not addressed promptly.
Management should closely monitor and address the factors contributing to the declining working capital turnover to ensure optimal utilization of resources and enhance overall operational efficiency. Strategies to improve working capital turnover may include optimizing inventory levels, improving collection practices, and negotiating favorable credit terms with suppliers.
Peer comparison
Dec 31, 2024