CF Industries Holdings Inc (CF)
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 | 6,631,000 | 7,668,000 | 8,716,000 | 10,330,000 | 11,186,000 | 11,118,000 | 10,159,000 | 8,358,000 | 6,538,000 | 5,100,000 | 4,585,000 | 4,201,000 | 4,124,000 | 4,071,000 | 4,262,000 | 4,560,000 | 4,590,000 | 4,673,000 | 4,675,000 | 4,473,000 |
| Total current assets | US$ in thousands | 3,050,000 | 4,190,000 | 4,072,000 | 3,848,000 | 3,673,000 | 3,680,000 | 3,738,000 | 3,826,000 | 2,593,000 | 1,814,000 | 1,569,000 | 1,489,000 | 1,367,000 | 1,171,000 | 1,136,000 | 1,480,000 | 974,000 | 1,669,000 | 1,488,000 | 1,412,000 |
| Total current liabilities | US$ in thousands | 800,000 | 926,000 | 622,000 | 862,000 | 995,000 | 1,381,000 | 1,097,000 | 2,228,000 | 1,432,000 | 1,015,000 | 643,000 | 891,000 | 906,000 | 681,000 | 615,000 | 1,235,000 | 665,000 | 1,245,000 | 1,042,000 | 826,000 |
| Working capital turnover | 2.95 | 2.35 | 2.53 | 3.46 | 4.18 | 4.84 | 3.85 | 5.23 | 5.63 | 6.38 | 4.95 | 7.03 | 8.95 | 8.31 | 8.18 | 18.61 | 14.85 | 11.02 | 10.48 | 7.63 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,631,000K ÷ ($3,050,000K – $800,000K)
= 2.95
The working capital turnover ratio for CF Industries Holdings Inc has shown some fluctuations in recent quarters. The ratio, which measures how efficiently the company is utilizing its working capital to generate revenue, ranged from a low of 2.35 in Q3 2023 to a high of 5.23 in Q1 2022.
A working capital turnover ratio of 2.95 in Q4 2023 indicates that the company generated $2.95 in revenue for every $1 of working capital invested during that period. This suggests a moderate efficiency in utilizing its working capital resources.
The fluctuations observed in the working capital turnover ratio could be attributed to various factors such as changes in sales volume, inventory management, or accounts receivable collection efficiency. The downward trend in the ratio from Q1 2022 to Q3 2023 may indicate a decreased efficiency in utilizing working capital during these quarters.
It is essential for CF Industries Holdings Inc to strive for consistency and improvement in its working capital turnover ratio to ensure optimal utilization of resources and sustainable revenue generation in the long term. Monitoring and analyzing this ratio over time can provide valuable insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023