Crocs Inc (CROX)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,799,361 | 3,774,430 | 3,720,249 | 3,622,738 | 3,424,385 | 3,112,307 | 2,781,762 | 2,484,734 | 2,300,270 | 2,125,150 | 1,864,815 | 1,557,826 | 1,377,267 | 1,228,740 | 1,178,749 | 1,205,848 | 1,221,229 | 1,174,239 | 1,127,337 | 1,100,907 |
| Total current assets | US$ in thousands | 910,704 | 979,182 | 1,101,220 | 1,114,660 | 1,025,980 | 1,123,170 | 1,168,310 | 1,038,540 | 666,569 | 920,052 | 678,515 | 727,182 | 492,841 | 472,309 | 493,930 | 514,001 | 425,382 | 391,263 | 449,765 | 431,516 |
| Total current liabilities | US$ in thousands | 698,296 | 647,877 | 665,940 | 634,366 | 641,274 | 571,160 | 602,144 | 530,785 | 388,243 | 350,215 | 380,922 | 325,748 | 291,584 | 278,610 | 232,979 | 236,031 | 257,223 | 233,452 | 258,322 | 221,843 |
| Working capital turnover | 17.89 | 11.39 | 8.55 | 7.54 | 8.90 | 5.64 | 4.91 | 4.89 | 8.26 | 3.73 | 6.27 | 3.88 | 6.84 | 6.34 | 4.52 | 4.34 | 7.26 | 7.44 | 5.89 | 5.25 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,799,361K ÷ ($910,704K – $698,296K)
= 17.89
The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively managing its working capital to support its operations and generate sales.
In the case of Crocs Inc, the working capital turnover has shown a positive trend over the quarters presented. The ratio has consistently increased from 4.95 in Q1 2022 to 18.65 in Q4 2023. This indicates that Crocs Inc has been able to efficiently utilize its working capital to generate sales revenue, reflecting an improvement in operational efficiency and potentially better liquidity management.
The significant increase in the working capital turnover ratio over the quarters suggests that Crocs Inc has been able to optimize its working capital levels, which may have resulted in improved overall financial performance. It is important to continue monitoring this ratio in future periods to ensure sustainable operational efficiency and liquidity management within the company.
Peer comparison
Dec 31, 2023