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

Company name
Symbol
Working capital turnover
CNH Industrial N.V.
CNH
1.15
Astec Industries Inc
ASTE
2.89
Caterpillar Inc
CAT
4.83