Crown Holdings Inc (CCK)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,532,000 | 12,632,000 | 11,118,000 | 11,274,000 | 11,665,000 |
| Total current assets | US$ in thousands | 4,833,000 | 4,659,000 | 4,495,000 | 4,903,000 | 4,002,000 |
| Total current liabilities | US$ in thousands | 4,201,000 | 3,932,000 | 4,133,000 | 4,282,000 | 3,899,000 |
| Working capital turnover | 18.25 | 17.38 | 30.71 | 18.15 | 113.25 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,532,000K ÷ ($4,833,000K – $4,201,000K)
= 18.25
The working capital turnover ratio for Crown Holdings, Inc. has shown fluctuating trends over the past five years, with values ranging from 19.00 to 113.25. In 2023, the ratio stands at 19.00, indicating the company generated $19.00 of revenue for every $1.00 of working capital invested. Compared to the previous year, there has been a slight increase from 17.80. Despite this improvement, the ratio is significantly lower than the peak in 2021 when it reached 31.48.
The decrease in the working capital turnover ratio from 2021 to 2022 suggests that the company may have been less efficient in managing its working capital to generate sales. However, the subsequent increase in 2023 shows a positive trend in utilizing its working capital more effectively.
The sharp decline in the working capital turnover ratio from 2021 to 2019, where it dropped from 113.25 to 18.61, raises questions about the company's working capital management strategies during that period. It indicates a significant shift in the efficiency of converting working capital into sales revenue.
Overall, the working capital turnover ratio for Crown Holdings, Inc. reflects varying levels of efficiency in utilizing its working capital over the years, with a notable improvement in 2023 compared to the previous year. Further analysis of the company's working capital components and operational efficiency may provide deeper insights into its financial performance and management practices.
Peer comparison
Dec 31, 2023