Balchem Corporation (BCPC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 922,439 | 942,358 | 799,023 | 703,644 | 643,705 |
| Total current assets | US$ in thousands | 314,242 | 335,803 | 322,232 | 266,888 | 254,946 |
| Total current liabilities | US$ in thousands | 148,491 | 140,042 | 143,802 | 94,428 | 92,258 |
| Working capital turnover | 5.57 | 4.81 | 4.48 | 4.08 | 3.96 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $922,439K ÷ ($314,242K – $148,491K)
= 5.57
Balchem Corp.'s working capital turnover has shown a consistent upward trend over the past five years, indicating an improvement in its efficiency in utilizing working capital to generate sales. The company's working capital turnover ratio increased from 3.96 in 2019 to 5.57 in 2023. This suggests that Balchem Corp. is generating $5.57 in sales for every dollar of working capital invested in its operations in 2023.
A higher working capital turnover ratio signifies that the company is able to efficiently manage its current assets and liabilities to support its sales activities. This trend indicates that Balchem Corp. has been able to optimize its working capital management over the years, potentially leading to improved cash flow and profitability.
The increasing trend in working capital turnover is a positive sign for Balchem Corp. as it reflects the company's ability to operate efficiently and effectively utilize its resources to drive revenue growth. It also indicates that the company may be effectively managing its inventory, accounts receivable, and accounts payable to support its business activities.
Peer comparison
Dec 31, 2023