CF Industries Holdings Inc (CF)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,936,000 | 5,983,000 | 5,886,000 | 6,089,000 | 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 |
| Total current assets | US$ in thousands | 2,520,000 | 2,850,000 | 2,801,000 | 2,719,000 | 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 |
| Total current liabilities | US$ in thousands | 818,000 | 1,013,000 | 596,000 | 690,000 | 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 |
| Working capital turnover | 3.49 | 3.26 | 2.67 | 3.00 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,936,000K ÷ ($2,520,000K – $818,000K)
= 3.49
The working capital turnover ratio for CF Industries Holdings Inc has shown a decreasing trend from March 31, 2020, to December 31, 2024. This ratio measures how efficiently the company is utilizing its working capital to generate sales.
Initially, in March 2020, the working capital turnover ratio was 18.61, indicating that the company was converting its working capital into sales exceptionally well. However, this ratio declined steadily over the years, reaching its lowest point of 2.35 on September 30, 2023. This suggests a potential inefficiency in the company's management of working capital during this period.
Although there was a slight improvement in the ratio in the subsequent quarters, it remained below the levels seen in the earlier years. By December 31, 2024, the working capital turnover ratio had increased to 3.49, but it still was below the levels seen at the beginning of the period under review.
Overall, the declining trend in the working capital turnover ratio for CF Industries Holdings Inc indicates a potential inefficiency in utilizing its working capital to generate sales, which may require further investigation and strategic management decisions to improve operational efficiency.
Peer comparison
Dec 31, 2024