CSX Corporation (CSX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,882,000 | 14,396,000 | 12,254,000 | 9,881,000 | 11,304,000 |
| Total current assets | US$ in thousands | 3,384,000 | 3,849,000 | 3,873,000 | 4,441,000 | 3,278,000 |
| Total current liabilities | US$ in thousands | 3,224,000 | 2,471,000 | 2,233,000 | 2,019,000 | 2,151,000 |
| Working capital turnover | 86.76 | 10.45 | 7.47 | 4.08 | 10.03 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $13,882,000K ÷ ($3,384,000K – $3,224,000K)
= 86.76
The working capital turnover of CSX Corp. has shown significant fluctuations over the past five years, ranging from 4.37 in 2020 to 91.61 in 2023. This ratio indicates the efficiency with which the company is utilizing its working capital to generate sales revenue. A higher working capital turnover suggests that the company is able to efficiently use its current assets to support its sales activities. The notable increase in the working capital turnover from 2020 to 2023 may indicate improved management of current assets and liabilities, leading to a more efficient operation of the business.
However, it is essential to delve deeper into the reasons behind these fluctuations in the working capital turnover. A sudden spike in the ratio could be a result of aggressive sales strategies, improved inventory management, or more efficient collection of receivables. On the other hand, a significant drop may signal issues such as slow-moving inventory, inefficient asset management, or a buildup of excess working capital.
Analyzing the working capital turnover over time allows stakeholders to assess the company's liquidity management and operational efficiency. Additional context, such as industry benchmarks and comparative analysis with peer companies, would provide a more comprehensive understanding of CSX Corp.'s performance in this area.
Peer comparison
Dec 31, 2023