CNH Industrial N.V. (CNH)
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 | 19,839,000 | 21,755,000 | 23,090,000 | 24,170,000 | 24,694,000 | 24,848,000 | 24,740,000 | 24,277,000 | 23,578,000 | 25,704,000 | 24,569,000 | 23,636,000 | 23,088,000 | 22,665,000 | 24,411,000 | 24,815,000 | 26,180,000 | 25,226,000 | 25,094,000 | 27,083,000 |
| Total current assets | US$ in thousands | 32,020,000 | 32,928,000 | 32,942,000 | 34,653,000 | 35,352,000 | 32,800,000 | 32,328,000 | 30,376,000 | 29,670,000 | 26,501,000 | 26,062,000 | 26,087,000 | 33,102,000 | 15,875,000 | 16,519,000 | 15,204,000 | 16,043,000 | 14,403,000 | 14,494,000 | 12,139,000 |
| Total current liabilities | US$ in thousands | 14,800,000 | 4,174,000 | 7,330,000 | 5,504,000 | 17,494,000 | 5,795,000 | 6,136,000 | 5,885,000 | 15,406,000 | 4,846,000 | 5,258,000 | 5,533,000 | 19,611,000 | 390,000 | 407,000 | 388,000 | 389,000 | 362,000 | 349,000 | 301,000 |
| Working capital turnover | 1.15 | 0.76 | 0.90 | 0.83 | 1.38 | 0.92 | 0.94 | 0.99 | 1.65 | 1.19 | 1.18 | 1.15 | 1.71 | 1.46 | 1.52 | 1.67 | 1.67 | 1.80 | 1.77 | 2.29 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,839,000K ÷ ($32,020,000K – $14,800,000K)
= 1.15
The working capital turnover ratio for CNH Industrial N.V. has shown fluctuating trends over the periods analyzed.
Initially, the ratio was relatively high at 2.29 as of March 31, 2020, indicating that the company was efficiently utilizing its working capital to generate sales. However, this efficiency decreased as the ratio dropped to 1.77 by June 30, 2020.
The trend continued with some variations throughout the following quarters, hovering around 1.5 to 1.8, which suggests that the company's ability to use its working capital effectively was somewhat inconsistent.
As of March 31, 2024, the working capital turnover ratio hit a low point at 0.83, reflecting a decline in the company's efficiency in converting working capital into revenue. This further decreased to 0.76 by September 30, 2024, indicating that CNH Industrial N.V. may have faced challenges in managing its working capital efficiently during this period.
Overall, the varying levels of the working capital turnover ratio highlight the importance for CNH Industrial N.V. to closely monitor and optimize its management of working capital to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2024