The Chefs Warehouse Inc (CHEF)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,794,690 | 3,390,260 | 2,556,590 | 1,728,410 | 1,090,630 |
| Total current assets | US$ in thousands | 868,043 | 730,943 | 720,860 | 469,960 | 405,662 |
| Total current liabilities | US$ in thousands | 425,396 | 385,777 | 283,745 | 197,018 | 118,102 |
| Working capital turnover | 8.57 | 9.82 | 5.85 | 6.33 | 3.79 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,794,690K ÷ ($868,043K – $425,396K)
= 8.57
The working capital turnover ratio of The Chefs Warehouse Inc has shown a positive trend over the past five years, increasing from 3.79 in December 31, 2020, to 8.57 in December 31, 2024. This indicates that the company is efficiently managing its working capital to generate sales. A higher turnover ratio suggests that the company is effectively using its current assets to support sales growth. However, a sudden decline in the ratio from 9.82 in December 31, 2023, to 8.57 in December 31, 2024, may warrant further investigation to understand the underlying reasons for this decrease. Overall, the increasing trend in working capital turnover reflects the company's ability to optimize its working capital resources efficiently.
Peer comparison
Dec 31, 2024