CenterPoint Energy Inc (CNP)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,643,000 | 8,696,000 | 9,321,000 | 8,352,000 | 7,418,000 |
| Total current assets | US$ in thousands | 4,381,000 | 3,027,000 | 4,699,000 | 7,355,000 | 2,920,000 |
| Total current liabilities | US$ in thousands | 4,045,000 | 3,864,000 | 5,113,000 | 4,287,000 | 4,825,000 |
| Working capital turnover | 25.72 | — | — | 2.72 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,643,000K ÷ ($4,381,000K – $4,045,000K)
= 25.72
The working capital turnover for CenterPoint Energy Inc has shown significant fluctuation over the years based on the provided data. In the year ending December 31, 2020, the ratio was not available (marked as "—"), indicating a lack of specific information or potentially a low level of turnover.
However, there was a notable increase in the working capital turnover to 2.72 in the year ending December 31, 2021, suggesting an improvement in the efficiency of utilizing working capital to generate revenue. This increase could be due to various factors such as better inventory management, efficient accounts receivable collection, or more effective accounts payable management.
Subsequently, the ratio was once again not available in the years ending December 31, 2022 and December 31, 2023, which might indicate changes in the company's financial structure or operations during those periods.
Interestingly, by the year ending December 31, 2024, there was a substantial surge in the working capital turnover to 25.72. This significant increase could imply a more aggressive approach to managing working capital, resulting in a faster turnover of current assets into revenue.
Overall, the fluctuating trend in CenterPoint Energy Inc's working capital turnover highlights the importance of closely monitoring and managing working capital efficiency to optimize the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2024