Clean Harbors Inc (CLH)
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 30, 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 | 5,754,620 | 5,765,470 | 5,607,830 | 5,459,390 | 5,395,620 | 5,338,840 | 5,337,840 | 5,308,930 | 5,168,630 | 4,988,910 | 4,587,405 | 4,156,892 | 3,803,032 | 3,426,911 | 3,272,642 | 3,074,051 | 3,139,310 | 3,215,536 | 3,321,592 | 3,480,263 |
| Total current assets | US$ in thousands | 2,433,800 | 2,354,480 | 2,229,060 | 2,105,800 | 2,052,220 | 1,950,750 | 1,848,480 | 1,903,050 | 2,033,760 | 2,041,090 | 1,924,100 | 1,807,250 | 1,741,170 | 1,784,160 | 1,677,320 | 1,542,350 | 1,525,720 | 1,493,660 | 1,431,800 | 1,486,480 |
| Total current liabilities | US$ in thousands | 1,102,670 | 1,121,850 | 1,061,640 | 1,017,520 | 1,037,540 | 975,387 | 914,415 | 926,837 | 1,020,090 | 1,017,910 | 990,058 | 914,139 | 925,314 | 739,901 | 711,069 | 650,553 | 636,145 | 641,061 | 604,940 | 658,412 |
| Working capital turnover | 4.32 | 4.68 | 4.80 | 5.02 | 5.32 | 5.47 | 5.71 | 5.44 | 5.10 | 4.88 | 4.91 | 4.65 | 4.66 | 3.28 | 3.39 | 3.45 | 3.53 | 3.77 | 4.02 | 4.20 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,754,620K ÷ ($2,433,800K – $1,102,670K)
= 4.32
Clean Harbors Inc's working capital turnover has shown a generally positive trend over the past few years, indicating the company's efficiency in generating revenue relative to its working capital. The ratio has fluctuated between 3.28 and 5.71, with an average of approximately 4.55.
A higher working capital turnover ratio indicates that Clean Harbors Inc is effectively utilizing its working capital to support sales and operations. The company has exhibited an improvement in its efficiency from the low of 3.28 in September 2021 to the high of 5.71 in June 2023.
Overall, the increasing trend in the working capital turnover ratio suggests that Clean Harbors Inc has been able to optimize its working capital management, potentially leading to improved financial performance and profitability. However, it is important for the company to consistently monitor and maintain this efficiency to ensure sustainable growth and success in the future.