Church & Dwight Company Inc (CHD)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,867,900 | 5,375,600 | 5,190,100 | 4,895,800 | 4,357,700 |
| Total current assets | US$ in thousands | 1,529,700 | 1,395,900 | 1,233,400 | 1,112,400 | 956,400 |
| Total current liabilities | US$ in thousands | 1,422,000 | 1,183,800 | 2,075,200 | 1,388,600 | 1,092,300 |
| Working capital turnover | 54.48 | 25.34 | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,867,900K ÷ ($1,529,700K – $1,422,000K)
= 54.48
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. Church & Dwight Co., Inc.'s working capital turnover has shown a significant improvement over the past few years.
In 2023, the working capital turnover ratio was 54.48, indicating that the company generated $54.48 of sales for every dollar of working capital invested. This represents a substantial increase from the previous year's ratio of 25.34.
The increase in the working capital turnover ratio suggests that Church & Dwight Co., Inc. has been more effective in managing its working capital to support sales growth. This improvement could be attributed to better inventory management, efficient accounts receivable collection, and optimized accounts payable practices.
Overall, the upward trend in the working capital turnover ratio reflects positively on the company's operational efficiency and indicates that Church & Dwight Co., Inc. is utilizing its working capital more effectively to drive revenue generation.
Peer comparison
Dec 31, 2023