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

Company name
Symbol
Working capital turnover
CF Industries Holdings Inc
CF
2.95
Scotts Miracle-Gro Company
SMG
15.06
The Mosaic Company
MOS
16.23