Columbia Sportswear Company (COLM)

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	3,368,926	3,332,326	3,386,241	3,436,870	3,487,199	3,596,729	3,566,105	3,523,235	3,464,152	3,424,352	3,273,999	3,262,306	3,126,402	2,912,305	2,808,691	2,558,932	2,501,554	2,540,798	2,746,499	2,956,098
Total current assets	US$ in thousands	2,008,580	1,826,260	1,847,810	1,846,220	2,014,680	1,882,760	1,901,140	1,987,360	2,136,940	1,959,610	1,795,130	1,838,130	2,114,040	1,920,070	1,878,720	1,805,220	1,855,620	1,647,800	1,602,760	1,710,740
Total current liabilities	US$ in thousands	766,545	566,940	544,441	447,306	596,627	525,960	557,268	568,685	738,718	696,656	618,444	571,014	680,390	590,719	567,600	474,968	552,622	499,594	535,828	610,355
Working capital turnover		2.71	2.65	2.60	2.46	2.46	2.65	2.65	2.48	2.48	2.71	2.78	2.57	2.18	2.19	2.14	1.92	1.92	2.21	2.57	2.69

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,368,926K ÷ ($2,008,580K – $766,545K)
= 2.71

The working capital turnover ratio for Columbia Sportswear Company has shown fluctuations over the provided periods. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

The trend shows that the working capital turnover ratio decreased from 2.69 on March 31, 2020, to 1.92 on December 31, 2020, and remained at the same level in the first quarter of 2021. This could suggest possible inefficiencies in managing working capital during that period.

From June 30, 2021, to June 30, 2024, the working capital turnover ratio gradually improved, reaching its peak at 2.78 on June 30, 2022. This suggests that the company was able to increase sales revenue relative to its working capital during this period, indicating better working capital management efficiency.

While fluctuations occurred afterwards, the ratio generally remained above 2, indicating that Columbia Sportswear Company has been utilizing its working capital effectively throughout the analyzed period. It is important for the company to continue monitoring and managing its working capital efficiently to sustain healthy operations and financial performance.