Clean Harbors Inc (CLH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,395,620 | 5,168,640 | 3,803,030 | 3,139,310 | 3,409,670 |
| Total current assets | US$ in thousands | 2,052,220 | 2,033,760 | 1,741,170 | 1,525,720 | 1,400,910 |
| Total current liabilities | US$ in thousands | 1,037,540 | 1,020,090 | 925,314 | 636,145 | 720,100 |
| Working capital turnover | 5.32 | 5.10 | 4.66 | 3.53 | 5.01 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,395,620K ÷ ($2,052,220K – $1,037,540K)
= 5.32
Clean Harbors, Inc.'s working capital turnover has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital to generate revenue. The working capital turnover ratio increased from 5.01 in 2019 to 5.33 in 2023.
A higher working capital turnover ratio suggests that Clean Harbors is able to effectively manage its working capital, such as current assets and liabilities, to support its operations and revenue generation. This efficiency can result from effective inventory management, prompt collection of receivables, and optimal payment of payables.
The company's ability to maintain a consistently high working capital turnover ratio indicates strong liquidity management and operational efficiency. It is essential for Clean Harbors to sustain this positive trend in working capital turnover to support its growth and profitability in the future.
Peer comparison
Dec 31, 2023