CDW Corp (CDW)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,149,400 | 23,513,000 | 20,669,900 | 18,312,600 | 17,873,000 |
| Total current assets | US$ in thousands | 6,705,000 | 6,564,000 | 6,478,100 | 5,953,500 | 4,334,100 |
| Total current liabilities | US$ in thousands | 5,442,000 | 4,947,100 | 5,096,000 | 3,898,300 | 3,491,400 |
| Working capital turnover | 16.75 | 14.54 | 14.96 | 8.91 | 21.21 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,149,400K ÷ ($6,705,000K – $5,442,000K)
= 16.75
CDW Corp's working capital turnover ratio has fluctuated over the past five years. The company's working capital turnover was 16.92 times in 2023, indicating that CDW Corp generated $16.92 in net sales revenue for each dollar of working capital invested. This represents an improvement from the previous year, where the ratio was 14.69.
In 2021, the working capital turnover ratio was 15.06, showing a slight decrease from 2020 when the ratio was 8.99. The significant increase in 2019 to 21.40 may indicate more efficient management of working capital at that time.
Overall, the trend in CDW Corp's working capital turnover suggests fluctuations in the efficiency of the company's utilization of working capital to generate sales revenue. It is important for CDW Corp to closely monitor this ratio to ensure optimal management of working capital for sustainable growth and profitability.
Peer comparison
Dec 31, 2023