CNH Industrial N.V. (CNH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,836,000 | 24,687,000 | 23,552,000 | 19,494,000 | 26,039,000 |
| Total current assets | US$ in thousands | 32,020,000 | 35,352,000 | 29,670,000 | 25,629,000 | 34,614,000 |
| Total current liabilities | US$ in thousands | 14,800,000 | 17,458,000 | 15,406,000 | 5,808,000 | 20,039,000 |
| Working capital turnover | 1.15 | 1.38 | 1.65 | 0.98 | 1.79 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,836,000K ÷ ($32,020,000K – $14,800,000K)
= 1.15
CNH Industrial N.V.'s working capital turnover has fluctuated over the past five years. In December 2020, the ratio stood at 1.79, indicating that the company was able to turnover its working capital 1.79 times during that year. However, by December 2021, the working capital turnover decreased to 0.98, suggesting a decline in efficiency in managing its working capital.
The ratio improved in December 2022, reaching 1.65, showing a better utilization of working capital compared to the previous year. However, by December 2023, the working capital turnover dropped to 1.38, signaling a lower efficiency in working capital management.
In the most recent year, December 2024, the working capital turnover further decreased to 1.15, implying that the company's ability to efficiently use its working capital has declined. Overall, the trend indicates some volatility in how effectively CNH Industrial N.V. has been managing its working capital over the past five years.
Peer comparison
Dec 31, 2024