Peabody Energy Corp (BTU)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,946,700 | 4,981,900 | 3,318,300 | 2,881,100 | 4,623,400 |
| Total current assets | US$ in thousands | 2,019,700 | 2,372,500 | 1,801,700 | 1,420,300 | 1,613,900 |
| Total current liabilities | US$ in thousands | 979,000 | 918,700 | 931,700 | 790,600 | 975,300 |
| Working capital turnover | 4.75 | 3.43 | 3.81 | 4.58 | 7.24 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,946,700K ÷ ($2,019,700K – $979,000K)
= 4.75
The working capital turnover ratio for Peabody Energy Corp has shown fluctuations over the past five years. The ratio measures how effectively the company is using its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in utilizing current assets to support sales.
In 2019, Peabody Energy Corp achieved a notably high working capital turnover ratio of 7.24, suggesting strong efficiency in converting its working capital into sales. However, this ratio decreased to 4.58 in 2020, indicating a potential decrease in efficiency in the utilization of working capital.
The ratio then increased to 3.81 in 2021 but showed a further decrease to 3.43 in 2022. This fluctuation suggests varying levels of efficiency in working capital management during these years.
In 2023, the working capital turnover ratio improved to 4.75, indicating a better utilization of working capital compared to the previous year. Overall, despite the fluctuations, Peabody Energy Corp's working capital turnover ratio demonstrates its ability to manage current assets to support its sales activities.
Peer comparison
Dec 31, 2023