Belden Inc (BDC)
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 | 2,512,084 | 2,619,913 | 2,663,597 | 2,637,903 | 2,606,485 | 2,559,372 | 2,493,642 | 2,402,948 | 2,301,260 | 2,077,317 | 1,948,395 | 1,797,349 | 1,752,192 | 1,913,864 | 1,971,123 | 2,094,664 | 2,131,278 | 2,133,642 | 2,154,581 | 2,167,127 |
| Total current assets | US$ in thousands | 1,456,980 | 1,412,350 | 1,436,520 | 1,441,070 | 1,536,210 | 1,384,610 | 1,408,850 | 1,393,680 | 1,877,640 | 1,267,990 | 1,164,970 | 1,064,390 | 1,098,400 | 1,006,760 | 1,191,120 | 1,186,970 | 1,377,750 | 1,122,660 | 1,116,460 | 1,129,740 |
| Total current liabilities | US$ in thousands | 633,504 | 553,171 | 567,787 | 534,485 | 639,919 | 545,502 | 590,337 | 583,548 | 752,866 | 622,427 | 582,537 | 508,006 | 520,761 | 457,782 | 539,062 | 574,218 | 722,544 | 577,488 | 590,021 | 572,056 |
| Working capital turnover | 3.05 | 3.05 | 3.07 | 2.91 | 2.91 | 3.05 | 3.05 | 2.97 | 2.05 | 3.22 | 3.35 | 3.23 | 3.03 | 3.49 | 3.02 | 3.42 | 3.25 | 3.91 | 4.09 | 3.89 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,512,084K ÷ ($1,456,980K – $633,504K)
= 3.05
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. In the case of Belden Inc, the working capital turnover ratio has been relatively stable over the past eight quarters, ranging from 2.91 to 3.11.
A high working capital turnover ratio indicates that Belden Inc is efficiently managing its working capital to generate revenue. This can be seen in the consistent values around 3.00, suggesting that the company is effectively using its current assets to support its operations.
However, it is essential to note that while a high ratio is generally positive, an excessively high ratio may indicate that the company is being too aggressive in managing its working capital, potentially risking shortages. On the other hand, a low ratio may signal inefficiencies in managing working capital, resulting in lower revenue generation.
Overall, in the case of Belden Inc, the stable working capital turnover ratio around 3.00 indicates efficient management of working capital to support revenue generation over the analyzed period.
Peer comparison
Dec 31, 2023