Peabody Energy Corp (BTU)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,236,700 | 4,946,700 | 4,981,900 | 3,318,300 | 2,881,100 |
| Total current assets | US$ in thousands | 1,780,700 | 2,019,700 | 2,372,500 | 1,801,700 | 1,420,300 |
| Total current liabilities | US$ in thousands | 827,500 | 979,000 | 918,700 | 914,500 | 771,200 |
| Working capital turnover | 4.44 | 4.75 | 3.43 | 3.74 | 4.44 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,236,700K ÷ ($1,780,700K – $827,500K)
= 4.44
The working capital turnover ratio of Peabody Energy Corp has been fluctuating over the past five years. It decreased from 4.44 in 2020 to 3.74 in 2021, indicating a weaker efficiency in utilizing working capital to support revenue generation. This trend continued as the ratio further decreased to 3.43 in 2022, suggesting a potential inefficiency in managing working capital during that period.
However, there was a significant improvement in 2023, with the working capital turnover ratio jumping to 4.75, showing a more efficient use of working capital to generate revenue. This improvement may be attributed to better working capital management practices implemented by the company during that year.
In 2024, the ratio reverted back to 4.44, similar to the level seen in 2020. Despite the fluctuating nature of the ratio in recent years, the overall trend indicates that Peabody Energy Corp has demonstrated varying levels of effectiveness in utilizing its working capital to generate revenue, with room for further optimization and efficiency improvement in the future.
Peer comparison
Dec 31, 2024