Topbuild Corp (BLD)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,121,100	4,950,980	3,442,500	2,686,160	2,585,470
Total current assets	US$ in thousands	2,049,240	1,549,040	1,187,690	936,405	779,827
Total current liabilities	US$ in thousands	771,538	789,639	733,426	496,477	476,754
Working capital turnover		4.01	6.52	7.58	6.11	8.53

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,121,100K ÷ ($2,049,240K – $771,538K)
= 4.01

The working capital turnover ratio for TopBuild Corp has fluctuated over the past five years. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2019, the working capital turnover was at its highest, indicating that the company was generating $8.66 of revenues for every dollar of working capital invested. This suggests that TopBuild Corp was effectively utilizing its working capital to drive sales during that year.

Subsequently, there was a decrease in the ratio in 2020 and 2022, which may indicate a decrease in efficiency in utilizing working capital to generate sales. However, it is worth noting that the ratio remained above 4 in both years, indicating that the company was still generating significant revenue relative to its working capital.

In 2021, the working capital turnover ratio saw an increase, reaching 7.67. This may suggest that the company improved its efficiency in managing working capital to generate sales revenue more effectively.

Overall, while there have been fluctuations in the working capital turnover ratio for TopBuild Corp over the last few years, the company has generally shown an ability to efficiently utilize its working capital to generate revenues. The trend over the years indicates that the company is effectively managing its working capital to support its sales activities.