Caterpillar Inc (CAT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 | 53,800,000 |
| Total current assets | US$ in thousands | 46,949,000 | 43,785,000 | 43,455,000 | 39,464,000 | 39,193,000 |
| Total current liabilities | US$ in thousands | 34,728,000 | 31,531,000 | 29,847,000 | 25,717,000 | 26,621,000 |
| Working capital turnover | 5.49 | 4.85 | 3.75 | 3.04 | 4.28 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $67,060,000K ÷ ($46,949,000K – $34,728,000K)
= 5.49
To calculate Caterpillar Inc.'s working capital turnover, we would need the data for both working capital and cost of goods sold (COGS) for each year. Unfortunately, without this information for the years 2019 to 2023, we are unable to compute the working capital turnover ratio for Caterpillar Inc.
However, I can provide insights into what the working capital turnover ratio measures and its significance. The working capital turnover ratio is a liquidity ratio that indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio implies that the company is effectively managing its working capital to support its sales activities.
It is important for investors and analysts to monitor the working capital turnover ratio over time to assess changes in the company's operational efficiency and liquidity management. A declining ratio could indicate inefficiencies in managing working capital, while an increasing ratio may suggest improved efficiency in converting working capital into sales.
In conclusion, the lack of specific data hinders a detailed analysis of Caterpillar Inc.'s working capital turnover. Investors and analysts should monitor this ratio alongside other financial metrics to evaluate the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023