Balchem Corporation (BCPC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 953,684 | 922,439 | 942,358 | 799,023 | 703,644 |
| Total current assets | US$ in thousands | 313,770 | 314,242 | 335,803 | 322,232 | 266,888 |
| Total current liabilities | US$ in thousands | 157,685 | 148,491 | 140,042 | 143,802 | 94,428 |
| Working capital turnover | 6.11 | 5.57 | 4.81 | 4.48 | 4.08 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $953,684K ÷ ($313,770K – $157,685K)
= 6.11
Balchem Corporation's working capital turnover has exhibited a positive trend over the past five years. The ratio has increased consistently from 4.08 in December 31, 2020, to 6.11 in December 31, 2024. This improvement indicates that the company is generating revenue at a faster rate relative to its working capital, which includes current assets and liabilities. A higher working capital turnover ratio suggests that Balchem is effectively utilizing its working capital to support its operations and generate sales. This may indicate efficient management of inventory, accounts receivable, and accounts payable, resulting in improved liquidity and profitability. Overall, the upward trend in working capital turnover reflects positively on Balchem Corporation's operational efficiency and financial health.
Peer comparison
Dec 31, 2024