Topbuild Corp (BLD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,331,020 | 5,121,100 | 4,950,980 | 3,442,500 | 2,686,160 |
| Total current assets | US$ in thousands | 1,598,970 | 2,049,240 | 1,549,040 | 1,187,690 | 936,405 |
| Total current liabilities | US$ in thousands | 767,182 | 771,538 | 789,639 | 733,426 | 496,477 |
| Working capital turnover | 6.41 | 4.01 | 6.52 | 7.58 | 6.11 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,331,020K ÷ ($1,598,970K – $767,182K)
= 6.41
Topbuild Corp's working capital turnover has shown varying trends over the years. The ratio increased from 6.11 in 2020 to 7.58 in 2021, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales. However, the ratio declined in 2022 to 6.52 before dropping significantly to 4.01 in 2023. This sharp decrease suggests potential inefficiencies in managing working capital during that period.
The ratio recovered slightly to 6.41 in 2024, but it remains below the levels seen in 2021. Overall, Topbuild Corp's working capital turnover has displayed some fluctuations, highlighting the importance of effectively managing working capital to support the company's operational activities and generate sales efficiently. Further analysis of the company's working capital management practices and strategies may be necessary to improve future performance in this area.