Brinks Company (BCO)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	4,604,600	4,575,500	4,503,900	4,440,300	4,354,500	4,294,000	4,239,900	4,159,000	4,065,300	4,037,600	3,933,100	3,715,300	3,623,700	3,537,900	3,500,000	3,588,500	3,610,700	3,582,600	3,512,500	4,304,800
Total current assets	US$ in thousands	2,788,300	2,462,400	2,517,300	2,448,100	2,597,400	2,446,700	2,222,300	2,083,900	1,999,500	1,962,800	1,889,500	1,776,700	1,814,800	1,704,900	1,675,100	1,339,000	1,232,600	1,246,100	1,244,600	1,154,300
Total current liabilities	US$ in thousands	1,944,100	1,624,600	1,619,500	1,602,600	1,674,800	1,347,900	1,371,800	1,364,500	1,429,000	1,404,000	1,330,800	1,266,800	1,336,200	1,166,400	1,072,700	980,600	1,002,000	888,600	888,800	845,400
Working capital turnover		5.45	5.46	5.02	5.25	4.72	3.91	4.99	5.78	7.13	7.23	7.04	7.29	7.57	6.57	5.81	10.01	15.66	10.02	9.87	13.94

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,604,600K ÷ ($2,788,300K – $1,944,100K)
= 5.45

The working capital turnover ratio for Brink`s Co. has shown variability over the past eight quarters. In Q4 2023, the ratio was 5.77, indicating that the company generated $5.77 in revenue for every dollar of working capital during that period. This represented an increase compared to the previous quarter (Q3 2023) where the ratio was 5.75.

Looking further back, the ratios fluctuated between 4.04 (Q3 2022) and 5.97 (Q1 2022). These fluctuations suggest changes in the efficiency of Brink`s Co. in utilizing its working capital to generate revenue. A higher ratio typically indicates that the company is generating more revenue from its working capital, which can be a sign of operational efficiency.

Overall, Brink`s Co. has maintained a relatively healthy working capital turnover ratio above 5 in recent quarters, indicating that the company has been effective in utilizing its working capital to generate sales. However, it is important to continue monitoring this ratio to ensure sustained efficiency in working capital management.