The Chefs Warehouse Inc (CHEF)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,781,671 | 3,687,427 | 3,626,421 | 3,541,531 | 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 |
| Total current assets | US$ in thousands | 868,043 | 792,314 | 740,549 | 692,688 | 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 |
| Total current liabilities | US$ in thousands | 425,396 | 429,113 | 399,534 | 359,867 | 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 |
| Working capital turnover | 8.54 | 10.15 | 10.63 | 10.64 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,781,671K ÷ ($868,043K – $425,396K)
= 8.54
The working capital turnover of The Chefs Warehouse Inc has shown fluctuating trends over the past few years, indicating varying efficiencies in managing its working capital. The ratio has generally been on an upward trajectory since March 31, 2021, reaching its peak at 10.64 on March 31, 2024, before slightly decreasing to 8.54 by December 31, 2024.
A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate sales revenue. The significant increase in the ratio from 3.72 on March 31, 2021, to 10.64 on March 31, 2024, indicates that the company has improved its efficiency in turning its working capital into sales during this period.
However, the slight decrease in the ratio in the latter part of 2024 may raise concerns about the company's ability to maintain this level of efficiency in the future. It is important for The Chefs Warehouse Inc to closely monitor its working capital turnover ratio and ensure that it remains at a level that indicates optimal utilization of its working capital resources.
Peer comparison
Dec 31, 2024