CDW Corp (CDW)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,998,700 | 21,376,000 | 23,748,700 | 20,820,800 | 18,467,500 |
| Total current assets | US$ in thousands | 7,373,100 | 6,705,000 | 6,564,000 | 6,478,100 | 5,953,500 |
| Total current liabilities | US$ in thousands | 5,474,400 | 5,442,000 | 4,947,100 | 5,096,000 | 3,898,300 |
| Working capital turnover | 11.06 | 16.92 | 14.69 | 15.06 | 8.99 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,998,700K ÷ ($7,373,100K – $5,474,400K)
= 11.06
Over the past five years, CDW Corp has shown varying efficiency in managing its working capital turnover. The working capital turnover ratio has ranged from 8.99 to 16.92 during this period.
In 2020, the working capital turnover was 8.99, indicating that CDW Corp generated $8.99 in revenue for every dollar of working capital invested.
Subsequently, there was a significant improvement in 2021, with the ratio increasing to 15.06, suggesting better utilization of working capital to generate sales. The company maintained this strong performance in 2022 and 2023, with working capital turnovers of 14.69 and 16.92, respectively.
However, in 2024, there was a slight decrease in efficiency, as the working capital turnover fell to 11.06. This could indicate a potential inefficiency in managing working capital that year.
Overall, CDW Corp has demonstrated varying levels of efficiency in utilizing its working capital over the past five years, with notable improvements in 2021 and 2023. Monitoring this ratio can provide insights into the company's operational efficiency and financial management strategies.
Peer comparison
Dec 31, 2024