CNH Industrial N.V. (CNH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,687,000 | 23,551,000 | 33,428,000 | 14,779,000 | 28,079,000 |
| Total current assets | US$ in thousands | 10,590,000 | 9,940,000 | 14,837,000 | 16,043,000 | 12,855,000 |
| Total current liabilities | US$ in thousands | 24,000 | 16,000 | 367,000 | 389,000 | 319,000 |
| Working capital turnover | 2.34 | 2.37 | 2.31 | 0.94 | 2.24 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $24,687,000K ÷ ($10,590,000K – $24,000K)
= 2.34
The working capital turnover of CNH Industrial N.V. has shown fluctuating trends over the past five years. In 2023, the working capital turnover ratio was 2.34, slightly lower than the previous year's 2.37. This indicates that the company generated $2.34 in revenue for every dollar invested in working capital during the year.
Comparing to 2020 where the ratio was significantly lower at 0.94, there has been a notable improvement in the efficiency of utilizing working capital to generate revenue. The company's performance in 2023 seems to be more in line with the levels seen in 2019 and 2021 when the ratios were 2.24 and 2.31, respectively.
Overall, the trend in the working capital turnover ratio suggests that CNH Industrial N.V. has been relatively effective in managing its working capital to generate revenue efficiently, with some variability in performance over the past five years.
Peer comparison
Dec 31, 2023