The Chefs Warehouse Inc (CHEF)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 23, 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,390,158 | 3,204,095 | 2,984,768 | 2,758,593 | 2,556,732 | 2,356,999 | 2,186,010 | 1,960,931 | 1,728,659 | 1,455,813 | 1,225,007 | 1,001,170 | 1,095,986 | 1,240,819 | 1,383,953 | 1,595,990 | 1,578,167 | 1,545,716 | 1,510,078 | 1,468,349 |
| Total current assets | US$ in thousands | 730,943 | 721,617 | 713,619 | 696,841 | 720,860 | 591,496 | 477,952 | 438,676 | 469,960 | 456,498 | 439,582 | 398,904 | 405,662 | 438,772 | 431,287 | 492,693 | 453,156 | 325,438 | 316,997 | 295,196 |
| Total current liabilities | US$ in thousands | 385,777 | 350,218 | 333,433 | 304,228 | 283,745 | 236,890 | 230,929 | 194,171 | 197,018 | 183,902 | 175,883 | 129,834 | 118,102 | 135,143 | 121,669 | 152,430 | 150,151 | 138,350 | 139,238 | 127,831 |
| Working capital turnover | 9.82 | 8.63 | 7.85 | 7.03 | 5.85 | 6.65 | 8.85 | 8.02 | 6.33 | 5.34 | 4.65 | 3.72 | 3.81 | 4.09 | 4.47 | 4.69 | 5.21 | 8.26 | 8.50 | 8.77 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,390,158K ÷ ($730,943K – $385,777K)
= 9.82
The working capital turnover ratio for The Chefs Warehouse Inc has shown fluctuations over the past several quarters. The ratio measures how efficiently the company is using its working capital to generate sales revenue.
From December 2019 to June 2020, the working capital turnover ratio remained relatively stable around 4.47 to 4.69. However, starting from September 2020, the ratio began to increase steadily, indicating an improvement in the company's working capital efficiency. The ratio peaked at 9.82 in December 2023, reflecting a significant enhancement in the company's ability to generate sales revenue using its working capital.
This upward trend suggests that The Chefs Warehouse Inc has been able to optimize its working capital management, potentially through better inventory control, accounts receivable collections, and accounts payable management. A higher working capital turnover ratio is generally considered positive as it implies that the company is efficiently utilizing its resources to drive sales.
Overall, the increasing trend in the working capital turnover ratio indicates an improvement in operational efficiency and financial performance for The Chefs Warehouse Inc in utilizing its working capital effectively to support its revenue generation.
Peer comparison
Dec 31, 2023