Clearwater Paper Corporation (CLW)
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 | 2,082,800 | 2,096,700 | 2,115,600 | 2,117,400 | 2,080,200 | 2,043,200 | 1,954,900 | 1,834,900 | 1,772,600 | 1,735,500 | 1,742,400 | 1,816,600 | 1,868,600 | 1,851,400 | 1,839,200 | 1,810,600 | 1,761,500 | 1,754,689 | 1,735,949 | 1,716,048 |
| Total current assets | US$ in thousands | 564,100 | 627,000 | 592,100 | 567,900 | 586,300 | 570,200 | 557,200 | 507,500 | 487,200 | 483,600 | 498,600 | 500,400 | 474,900 | 492,000 | 484,400 | 520,900 | 465,800 | 464,260 | 519,136 | 486,820 |
| Total current liabilities | US$ in thousands | 286,000 | 260,900 | 263,500 | 265,500 | 312,000 | 295,100 | 300,300 | 256,100 | 254,100 | 256,900 | 255,900 | 235,300 | 244,800 | 239,600 | 247,500 | 290,400 | 280,400 | 294,993 | 543,724 | 515,220 |
| Working capital turnover | 7.49 | 5.73 | 6.44 | 7.00 | 7.58 | 7.43 | 7.61 | 7.30 | 7.60 | 7.66 | 7.18 | 6.85 | 8.12 | 7.34 | 7.76 | 7.86 | 9.50 | 10.37 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,082,800K ÷ ($564,100K – $286,000K)
= 7.49
Clearwater Paper Corp's working capital turnover has shown fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales.
In Q4 2023, the working capital turnover ratio was 7.49, indicating that Clearwater Paper Corp converted its working capital into sales 7.49 times during the quarter. This was higher than the ratios in Q3 2023 (5.73) and Q2 2023 (6.44) but slightly lower than in Q1 2023 (7.00).
Comparing Q4 2023 to the same quarter in the previous year, there was a slight decrease from 7.58 in Q4 2022. This suggests a slightly less efficient use of working capital in generating sales in Q4 2023 compared to the previous year.
Overall, Clearwater Paper Corp has maintained a relatively high working capital turnover ratio over the past eight quarters, indicating efficient management of its working capital to generate sales. However, it is important for the company to monitor and manage its working capital effectively to ensure continued operational efficiency and profitability.