CNH Industrial N.V. (CNH)
Working capital turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 21,752,000 | 23,084,000 | 24,163,000 | 24,687,000 | 24,838,000 | 24,733,000 | 24,248,000 | 23,551,000 | 36,020,000 | 34,885,000 | 33,977,000 | 33,428,000 | 22,665,000 | 24,411,000 | 24,815,000 | 26,180,000 | 25,226,000 | 25,094,000 | 27,083,000 | 28,079,000 |
| Total current assets | US$ in thousands | 8,380,000 | 8,598,000 | 10,148,000 | 10,590,000 | 10,132,000 | 10,336,000 | 9,988,000 | 9,940,000 | 9,176,000 | 9,057,000 | 9,488,000 | 14,837,000 | 15,875,000 | 16,519,000 | 15,204,000 | 16,043,000 | 14,403,000 | 14,494,000 | 12,139,000 | 12,855,000 |
| Total current liabilities | US$ in thousands | 21,000 | 21,000 | 23,000 | 24,000 | 19,000 | 16,000 | 4,000 | 16,000 | 12,000 | 11,000 | 10,000 | 367,000 | 390,000 | 407,000 | 388,000 | 389,000 | 362,000 | 349,000 | 301,000 | 319,000 |
| Working capital turnover | 2.60 | 2.69 | 2.39 | 2.34 | 2.46 | 2.40 | 2.43 | 2.37 | 3.93 | 3.86 | 3.58 | 2.31 | 1.46 | 1.52 | 1.67 | 1.67 | 1.80 | 1.77 | 2.29 | 2.24 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $21,752,000K ÷ ($8,380,000K – $21,000K)
= 2.60
The working capital turnover ratio for CNH Industrial N.V. has exhibited fluctuations over the past several quarters. The ratio indicates the efficiency with which the company is utilizing its working capital to generate sales revenue.
In the most recent quarter (September 30, 2024), the working capital turnover ratio stood at 2.60, down slightly from the previous quarter's figure of 2.69. This suggests that CNH Industrial N.V. generated $2.60 in sales revenue for every $1 of working capital invested. While the ratio has decreased since the last quarter, it remains relatively stable compared to previous periods.
Looking back over the past several quarters, we see fluctuations in the working capital turnover ratio. The company experienced a peak in working capital efficiency in the third quarter of 2022, with a ratio of 3.93, indicating a significant improvement in utilizing working capital to generate sales. Subsequently, the ratio fluctuated but generally remained above 2.0 until the recent quarters.
Overall, the trend in the working capital turnover ratio for CNH Industrial N.V. suggests that the company has been relatively efficient in managing its working capital to support sales generation. However, continued monitoring of the ratio and its trends will be important to assess the company's ongoing operational efficiency and liquidity management.
Peer comparison
Sep 30, 2024