The Chefs Warehouse Inc (CHEF)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,390,260 | 2,556,590 | 1,728,410 | 1,090,630 | 1,573,980 |
| Total current assets | US$ in thousands | 730,943 | 720,860 | 469,960 | 405,662 | 453,156 |
| Total current liabilities | US$ in thousands | 385,777 | 283,745 | 197,018 | 118,102 | 150,151 |
| Working capital turnover | 9.82 | 5.85 | 6.33 | 3.79 | 5.19 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,390,260K ÷ ($730,943K – $385,777K)
= 9.82
The working capital turnover of The Chefs Warehouse Inc has exhibited fluctuations over the past five years. In 2023, the working capital turnover ratio increased significantly to 9.82, indicating that the company generated $9.82 in revenue for every dollar of working capital invested. This represents a notable improvement compared to the previous years, suggesting a more efficient management of working capital.
In 2022 and 2021, the working capital turnover ratios were 5.85 and 6.33 respectively, reflecting a relatively stable performance in utilizing working capital to generate revenue.
In 2020, the working capital turnover ratio dropped to 3.79, indicating a decline in efficiency in utilizing working capital to generate revenue. However, the ratio improved in 2019 to 5.19, showing a rebound in efficiency compared to the previous year.
Overall, the trend in working capital turnover for The Chefs Warehouse Inc demonstrates variability over the years, with a notable improvement in 2023. This ratio is a key indicator of operational efficiency and management's effectiveness in leveraging working capital to drive revenue generation.
Peer comparison
Dec 31, 2023