Church & Dwight Company Inc (CHD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,107,100 | 5,867,900 | 5,375,600 | 5,190,100 | 4,895,800 |
| Total current assets | US$ in thousands | 2,240,600 | 1,529,700 | 1,395,900 | 1,233,400 | 1,112,400 |
| Total current liabilities | US$ in thousands | 1,315,900 | 1,422,000 | 1,183,800 | 2,075,200 | 1,388,600 |
| Working capital turnover | 6.60 | 54.48 | 25.34 | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,107,100K ÷ ($2,240,600K – $1,315,900K)
= 6.60
Church & Dwight Company Inc's working capital turnover has shown significant fluctuations over the past five years. In 2020 and 2021, the working capital turnover was not available, indicating potential data limitations.
In 2022, the working capital turnover was reported at 25.34, reflecting a substantial improvement in the efficiency of the company's working capital management. This suggests that the company was able to generate sales revenue relative to its working capital investment.
The following year in 2023, the working capital turnover more than doubled to 54.48, indicating a further enhancement in the company's ability to convert its working capital into sales. This sharp increase suggests that Church & Dwight Company Inc managed its working capital more effectively, resulting in increased sales generation.
However, in 2024, the working capital turnover decreased to 6.60, signaling a significant drop in efficiency compared to the previous year. This decline could indicate challenges in managing working capital efficiently to support sales activities.
Overall, it is essential for Church & Dwight Company Inc to consistently monitor and optimize its working capital turnover to ensure efficient utilization of its working capital in supporting revenue generation and overall business performance.
Peer comparison
Dec 31, 2024