Clean Harbors Inc (CLH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,754,620 | 5,395,620 | 5,168,640 | 3,803,030 | 3,139,310 |
| Total current assets | US$ in thousands | 2,433,800 | 2,052,220 | 2,033,760 | 1,741,170 | 1,525,720 |
| Total current liabilities | US$ in thousands | 1,102,670 | 1,037,540 | 1,020,090 | 925,314 | 636,145 |
| Working capital turnover | 4.32 | 5.32 | 5.10 | 4.66 | 3.53 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,754,620K ÷ ($2,433,800K – $1,102,670K)
= 4.32
The working capital turnover ratio for Clean Harbors Inc has shown a consistent upward trend over the past five years. Starting at 3.53 in December 31, 2020, it has steadily increased to 5.10 as of December 31, 2022, indicating an improvement in the efficiency of the company's working capital management.
However, there was a slight dip in the ratio to 4.32 by December 31, 2024, which might suggest a decrease in the efficiency of converting working capital into revenue during that period. Overall, the increasing trend in the working capital turnover ratio signals that Clean Harbors Inc has been able to generate more revenue relative to its working capital base, which is a positive sign of improved operational efficiency.