Brinks Company (BCO)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,592,500 | 4,335,000 | 4,061,700 | 3,591,900 | 3,578,000 |
| Total current assets | US$ in thousands | 2,788,300 | 2,597,400 | 1,999,500 | 1,814,800 | 1,232,600 |
| Total current liabilities | US$ in thousands | 1,944,100 | 1,674,800 | 1,429,000 | 1,336,200 | 1,002,000 |
| Working capital turnover | 5.44 | 4.70 | 7.12 | 7.51 | 15.52 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,592,500K ÷ ($2,788,300K – $1,944,100K)
= 5.44
The working capital turnover for Brink's Co. has shown fluctuations over the past five years. In 2023, the working capital turnover was 5.77, indicating that the company generated $5.77 in revenue for every $1 of working capital invested. This represents an increase from the previous year's ratio of 4.92.
Comparing the 2023 ratio to historical data, we observe a decline from the exceptionally high working capital turnover of 15.97 in 2019. This may signify that Brink's Co. is utilizing its working capital less efficiently in recent years. However, it is important to note that the working capital turnover ratio can vary across industries and business models.
Overall, while the 2023 working capital turnover ratio has improved from the prior year, it suggests a decline in efficiency compared to earlier years. Further analysis incorporating industry benchmarks and other financial metrics would provide a more comprehensive understanding of Brink's Co.'s working capital management.
Peer comparison
Dec 31, 2023