Crown Holdings Inc (CCK)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,532,000 | 11,716,000 | 11,928,000 | 12,382,000 | 12,632,000 | 12,492,000 | 12,255,000 | 11,672,000 | 11,632,000 | 11,816,000 | 11,385,000 | 10,666,000 | 10,345,000 | 10,174,000 | 10,769,000 | 11,667,000 | 11,665,000 | 11,608,000 | 11,698,000 | 11,709,000 |
| Total current assets | US$ in thousands | 4,833,000 | 4,452,000 | 4,612,000 | 4,662,000 | 4,659,000 | 4,967,000 | 5,101,000 | 5,062,000 | 4,495,000 | 6,105,000 | 7,105,000 | 4,603,000 | 4,903,000 | 4,330,000 | 3,973,000 | 4,250,000 | 4,002,000 | 4,082,000 | 4,214,000 | 4,024,000 |
| Total current liabilities | US$ in thousands | 4,201,000 | 3,957,000 | 3,554,000 | 3,576,000 | 3,932,000 | 4,010,000 | 5,356,000 | 5,106,000 | 4,133,000 | 5,535,000 | 4,514,000 | 3,756,000 | 4,282,000 | 3,624,000 | 3,447,000 | 3,238,000 | 3,899,000 | 3,632,000 | 3,608,000 | 3,342,000 |
| Working capital turnover | 18.25 | 23.67 | 11.27 | 11.40 | 17.38 | 13.05 | — | — | 32.13 | 20.73 | 4.39 | 12.59 | 16.66 | 14.41 | 20.47 | 11.53 | 113.25 | 25.80 | 19.30 | 17.17 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,532,000K ÷ ($4,833,000K – $4,201,000K)
= 18.25
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher working capital turnover ratio typically indicates better efficiency in managing working capital.
Analyzing the data provided for Crown Holdings, Inc. over the past quarters, we observe fluctuations in the working capital turnover ratio.
In Q4 2023, the working capital turnover ratio was 19.00, which decreased from 24.57 in Q3 2023. This reduction may suggest a decrease in the company's ability to efficiently convert working capital into sales during this period.
However, comparing Q4 2023 to Q4 2022, where the ratio was 17.80, we note an improvement in the company's working capital turnover efficiency.
The trend continues with the Q3 2023 ratio of 24.57 showing an improvement over the Q3 2022 ratio of 13.03, indicating enhanced efficiency in working capital management over the year.
It is important to note that the working capital turnover ratio in Q2 2023 and Q1 2023 was lower at 11.68 and 11.74, respectively, compared to the preceding quarters, which might indicate potential challenges in managing working capital during those periods.
The information for Q2 2022 and Q1 2022 is missing, making it difficult to provide a complete trend analysis for those periods.
Overall, while there have been fluctuations in Crown Holdings, Inc.'s working capital turnover ratio, the general trend shows variations in the efficiency of working capital utilization across different quarters. Further analysis and comparison with industry benchmarks would provide more insights into the company's working capital management performance.
Peer comparison
Dec 31, 2023