Crane Company (CR)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,131,200 | 2,086,400 | 3,374,900 | 3,180,000 | 2,936,900 |
| Total current assets | US$ in thousands | 1,403,200 | 1,090,800 | 1,698,600 | 1,744,200 | 1,574,200 |
| Total current liabilities | US$ in thousands | 543,400 | 467,100 | 1,477,900 | 795,200 | 1,056,600 |
| Working capital turnover | 2.48 | 3.35 | 15.29 | 3.35 | 5.67 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,131,200K ÷ ($1,403,200K – $543,400K)
= 2.48
The working capital turnover for Crane Company showed some fluctuations over the years, with a significant increase from 2021 to 2022, followed by a sharp decline in 2023 and 2024. In 2020, the working capital turnover was 5.67, indicating that Crane Company generated $5.67 in net sales for every dollar of working capital invested. This ratio dropped to 3.35 in 2021, suggesting a decrease in efficiency in utilizing working capital.
The substantial spike to 15.29 in 2022 implies that Crane Company significantly improved its efficiency in generating sales from working capital investments. However, the ratio fell back to 3.35 in 2023 and further declined to 2.48 in 2024, indicating a decrease in the company's ability to generate sales from its working capital in those years.
Overall, the working capital turnover ratios reflect varying levels of efficiency in utilizing working capital over the years, with a notable improvement in 2022 followed by declines in subsequent years. Further analysis of operational and financial strategies may be needed to understand the underlying factors contributing to these fluctuations.
Peer comparison
Dec 31, 2024