PC Connection Inc (CNXN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,802,060 | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 |
| Total current assets | US$ in thousands | 1,166,850 | 1,048,640 | 953,792 | 932,413 | 858,980 |
| Total current liabilities | US$ in thousands | 371,205 | 327,965 | 310,517 | 374,632 | 342,260 |
| Working capital turnover | 3.52 | 3.95 | 4.86 | 5.19 | 5.01 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,802,060K ÷ ($1,166,850K – $371,205K)
= 3.52
PC Connection Inc's working capital turnover has shown a fluctuating trend over the past five years. The ratio has ranged from 3.52 to 5.19, indicating the company's effectiveness in utilizing its working capital to generate sales revenue.
In 2021 and 2022, the working capital turnover improved from 5.01 to 5.19, suggesting that the company efficiently converted its working capital into sales. However, there was a slight decline in 2023 to 3.95, indicating a potential inefficiency in managing working capital during that period.
The most significant decrease occurred in 2024, where the working capital turnover dropped to 3.52. This substantial decline could suggest challenges in efficiently utilizing working capital to support sales operations during that year.
Overall, PC Connection Inc should closely monitor its working capital turnover to ensure optimal utilization of resources and strive for consistency in converting working capital into sales revenue.
Peer comparison
Dec 31, 2024