CF Industries Holdings Inc (CF)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,631,000 | 11,186,000 | 6,538,000 | 4,124,000 | 4,590,000 |
| Total current assets | US$ in thousands | 3,050,000 | 3,673,000 | 2,593,000 | 1,367,000 | 974,000 |
| Total current liabilities | US$ in thousands | 800,000 | 995,000 | 1,432,000 | 906,000 | 665,000 |
| Working capital turnover | 2.95 | 4.18 | 5.63 | 8.95 | 14.85 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,631,000K ÷ ($3,050,000K – $800,000K)
= 2.95
CF Industries Holdings Inc's working capital turnover has been fluctuating over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio is generally considered favorable as it implies that the company is efficiently managing its working capital.
The working capital turnover for CF Industries Holdings Inc has shown a declining trend from 14.85 in 2019 to 2.95 in 2023. This decrease could signify a less efficient use of working capital in generating sales revenue over the years. A lower turnover ratio may indicate potential issues with inventory management, accounts receivable collection, or excessive working capital tied up in the business.
It is important for CF Industries Holdings Inc to closely monitor and improve its working capital turnover ratio to ensure optimal utilization of resources and enhance overall operational efficiency. Further analysis of the company's working capital components and operating activities may reveal specific areas that require attention to improve the ratio in the future.
Peer comparison
Dec 31, 2023