Clean Harbors Inc (CLH)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,405,713 | 3,392,912 | 3,350,811 | 3,331,464 |
| Total current assets | US$ in thousands | 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 | 1,400,910 | 1,300,580 | 1,213,190 | 1,148,120 |
| Total current liabilities | US$ in thousands | 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 | 720,100 | 680,042 | 633,690 | 597,510 |
| Working capital turnover | 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 | 5.00 | 5.47 | 5.78 | 6.05 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (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 consistent trend of improvement over the past few quarters. The ratio has been consistently above 5, indicating that the company efficiently utilizes its working capital to generate sales revenue.
The working capital turnover ratio measures how effectively the company is able to generate revenue from its working capital. A higher ratio implies that the company is efficient in managing its short-term assets and liabilities to support its operations.
The increasing trend in the working capital turnover ratio suggests that Clean Harbors, Inc. has been able to optimize the deployment of its working capital resources to support its business activities and generate sales. This efficiency in working capital management can lead to enhanced liquidity and profitability for the company.
Overall, the consistent improvement in Clean Harbors, Inc.'s working capital turnover reflects positively on its operational efficiency and ability to utilize its resources effectively to drive business growth.
Peer comparison
Dec 31, 2023