CSX Corporation (CSX)
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 | 13,882,000 | 14,031,000 | 14,385,000 | 14,648,000 | 14,396,000 | 14,190,000 | 13,636,000 | 13,039,000 | 12,410,000 | 11,808,000 | 11,094,000 | 9,982,000 | 10,036,000 | 10,096,000 | 10,613,000 | 11,610,000 | 11,955,000 | 12,213,000 | 12,345,000 | 12,386,000 |
| Total current assets | US$ in thousands | 3,384,000 | 3,359,000 | 2,911,000 | 3,355,000 | 3,849,000 | 4,310,000 | 2,784,000 | 3,757,000 | 3,873,000 | 3,897,000 | 4,573,000 | 4,305,000 | 4,441,000 | 4,228,000 | 3,791,000 | 3,821,000 | 3,278,000 | 3,960,000 | 3,186,000 | 3,479,000 |
| Total current liabilities | US$ in thousands | 3,224,000 | 2,934,000 | 2,055,000 | 2,321,000 | 2,471,000 | 2,508,000 | 2,393,000 | 2,575,000 | 2,233,000 | 2,268,000 | 1,951,000 | 1,800,000 | 2,019,000 | 2,294,000 | 2,347,000 | 2,211,000 | 2,151,000 | 2,805,000 | 2,053,000 | 1,926,000 |
| Working capital turnover | 86.76 | 33.01 | 16.80 | 14.17 | 10.45 | 7.87 | 34.87 | 11.03 | 7.57 | 7.25 | 4.23 | 3.98 | 4.14 | 5.22 | 7.35 | 7.21 | 10.61 | 10.57 | 10.90 | 7.98 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,882,000K ÷ ($3,384,000K – $3,224,000K)
= 86.76
A review of CSX Corp.'s working capital turnover reveals fluctuations in the efficiency with which the company is utilizing its working capital to generate revenue. The working capital turnover ratio has varied significantly over the quarters, ranging from a low of 8.07 in Q3 2022 to a high of 91.61 in Q4 2023.
A high working capital turnover ratio indicates that the company is effectively managing its working capital to generate revenue rapidly. The significant increase seen in Q4 2023 compared to prior quarters suggests that CSX Corp. has improved its efficiency in using its working capital to drive sales within a shorter period.
However, it is important to note that such a dramatic fluctuation in the ratio could also be indicative of inconsistencies or external factors impacting the company's operations. It would be beneficial to further investigate the reasons behind these fluctuations to assess the overall financial health and efficiency of CSX Corp. in managing its working capital effectively.
Peer comparison
Dec 31, 2023