Carlisle Companies Incorporated (CSL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,003,600 | 4,586,900 | 6,591,900 | 4,810,300 | 3,969,900 |
| Total current assets | US$ in thousands | 1,926,300 | 3,408,100 | 2,245,000 | 2,150,900 | 2,209,300 |
| Total current liabilities | US$ in thousands | 665,800 | 1,186,300 | 1,078,400 | 1,169,500 | 646,200 |
| Working capital turnover | 3.97 | 2.06 | 5.65 | 4.90 | 2.54 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,003,600K ÷ ($1,926,300K – $665,800K)
= 3.97
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Looking at the data provided for Carlisle Companies Incorporated, we observe a significant increase in the working capital turnover ratio from 2.54 in December 31, 2020, to 5.65 in December 31, 2022. This indicates a substantial improvement in the company's ability to convert its working capital into sales over this period.
However, in December 31, 2023, the working capital turnover ratio dropped to 2.06, suggesting a potential decreased efficiency in utilizing working capital to generate sales during that period. The ratio then increased again to 3.97 by December 31, 2024, showing some recovery in the company's working capital efficiency.
Overall, the trend in Carlisle Companies Incorporated's working capital turnover ratio reflects fluctuations in how effectively the company manages its working capital to support its sales activities. It is essential for the company to closely monitor this ratio to ensure optimal utilization of its working capital resources.
Peer comparison
Dec 31, 2024