Balchem Corporation (BCPC)
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 | 922,439 | 926,271 | 940,590 | 946,031 | 942,358 | 922,960 | 876,562 | 842,234 | 799,023 | 766,603 | 743,874 | 714,864 | 703,644 | 689,458 | 672,913 | 661,112 | 643,705 | 640,717 | 637,165 | 639,298 |
| Total current assets | US$ in thousands | 314,242 | 341,222 | 336,534 | 335,603 | 335,803 | 368,111 | 377,141 | 319,804 | 322,232 | 300,275 | 287,263 | 281,204 | 266,888 | 270,122 | 263,862 | 270,681 | 254,946 | 239,949 | 231,885 | 221,666 |
| Total current liabilities | US$ in thousands | 148,491 | 108,038 | 114,386 | 116,523 | 140,042 | 142,085 | 144,143 | 123,529 | 143,802 | 104,926 | 100,759 | 88,763 | 94,428 | 68,413 | 67,960 | 71,720 | 92,258 | 72,023 | 62,091 | 63,810 |
| Working capital turnover | 5.57 | 3.97 | 4.23 | 4.32 | 4.81 | 4.08 | 3.76 | 4.29 | 4.48 | 3.92 | 3.99 | 3.71 | 4.08 | 3.42 | 3.43 | 3.32 | 3.96 | 3.82 | 3.75 | 4.05 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $922,439K ÷ ($314,242K – $148,491K)
= 5.57
The working capital turnover ratio for Balchem Corp. has been relatively stable over the past eight quarters, ranging from a low of 3.76 in Q2 2022 to a high of 5.57 in Q4 2023. This ratio indicates the company's efficiency in utilizing its working capital to generate revenue. A higher working capital turnover ratio suggests that the company is efficiently using its current assets to generate sales, while a lower ratio may indicate inefficiencies in managing working capital.
In Q4 2023, Balchem Corp. achieved a working capital turnover ratio of 5.57, which implies that the company generated $5.57 in revenue for every dollar of working capital invested during that quarter. This is an improvement compared to previous quarters and indicates that the company's operational efficiency has increased.
Overall, Balchem Corp.'s working capital turnover has shown a positive trend, with fluctuations within a reasonable range. The company appears to be effectively managing its working capital to support its operations and drive revenue growth. However, it is important to continue monitoring this ratio to ensure sustained efficiency in the utilization of working capital.
Peer comparison
Dec 31, 2023