Columbia Sportswear Company (COLM)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,508,870	3,486,170	3,144,770	2,501,550	3,042,480
Total current assets	US$ in thousands	2,014,680	2,136,940	2,114,040	1,855,620	1,875,750
Total current liabilities	US$ in thousands	596,627	738,718	680,390	552,622	630,915
Working capital turnover		2.47	2.49	2.19	1.92	2.44

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,508,870K ÷ ($2,014,680K – $596,627K)
= 2.47

The working capital turnover ratio for Columbia Sportswear Co. has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales.

In 2023 and 2022, the working capital turnover ratio was 2.46 and 2.48 respectively, reflecting a relatively stable performance in managing working capital efficiency. This suggests that the company was able to generate sales turnover of approximately 2.46 and 2.48 times the amount of working capital invested.

In 2021, the ratio decreased to 2.18, indicating a slight deterioration in the company's ability to efficiently convert working capital into sales. However, this was followed by an improvement in 2022.

In 2020, the working capital turnover ratio was 1.92, which was the lowest among the years analyzed. This suggests that the company may have faced challenges in efficiently utilizing its working capital to generate sales during that period.

On the other hand, in 2019, the ratio was 2.44, indicating a higher efficiency in working capital management compared to 2020. This implies that the company was more successful in generating sales from its working capital investment in 2019.

Overall, while there have been fluctuations in the working capital turnover ratio for Columbia Sportswear Co. over the past five years, the company has generally maintained a moderate level of efficiency in converting working capital into sales, with varying degrees of performance in different years.