Topbuild Corp (BLD)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,312,220 | 5,266,710 | 5,200,730 | 5,133,820 | 5,120,910 | 5,099,790 | 5,078,940 | 5,041,270 | 4,951,870 | 4,757,590 | 4,311,639 | 3,878,974 | 3,443,847 | 3,112,824 | 2,961,908 | 2,771,414 | 2,692,863 | 2,633,725 | 2,617,128 | 2,629,892 |
| Total current assets | US$ in thousands | 1,598,970 | 1,521,140 | 1,760,310 | 2,202,460 | 2,049,240 | 1,881,780 | 1,794,600 | 1,612,830 | 1,549,040 | 1,449,530 | 1,354,550 | 1,281,170 | 1,187,690 | 1,068,100 | 952,463 | 960,710 | 936,405 | 926,504 | 837,103 | 782,327 |
| Total current liabilities | US$ in thousands | 767,182 | 756,140 | 752,249 | 784,365 | 771,538 | 753,670 | 758,343 | 751,243 | 789,639 | 788,581 | 801,693 | 777,921 | 733,426 | 584,798 | 543,236 | 514,284 | 496,477 | 485,146 | 471,525 | 471,083 |
| Working capital turnover | 6.39 | 6.88 | 5.16 | 3.62 | 4.01 | 4.52 | 4.90 | 5.85 | 6.52 | 7.20 | 7.80 | 7.71 | 7.58 | 6.44 | 7.24 | 6.21 | 6.12 | 5.97 | 7.16 | 8.45 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,312,220K ÷ ($1,598,970K – $767,182K)
= 6.39
Based on the data provided for Topbuild Corp's working capital turnover, we can observe fluctuations in the efficiency of the company in utilizing its working capital over the periods shown.
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio indicates that the company is able to generate more sales with less working capital investment, reflecting strong efficiency and liquidity.
From March 31, 2020, to June 30, 2022, Topbuild Corp's working capital turnover remained relatively stable, ranging from 7.16 to 7.80. This consistency suggests that the company was effectively managing its working capital during this period.
However, starting from March 31, 2023, there was a significant decline in the working capital turnover ratio, dropping to as low as 3.62 by March 31, 2024. This decline indicates that the company's ability to generate sales from its working capital decreased, possibly signaling inefficiencies in managing its current assets and liabilities.
Notably, there was a slight improvement in the working capital turnover ratio by the end of December 31, 2024, with the ratio at 6.39. While this uptick shows some recovery, Topbuild Corp may need to focus on optimizing its working capital management strategies to enhance efficiency and productivity moving forward.