Corteva Inc (CTVA)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,226,000 | 17,455,000 | 15,655,000 | 14,217,000 | 13,846,000 |
| Total current assets | US$ in thousands | 16,260,000 | 16,795,000 | 15,546,000 | 14,768,000 | 13,519,000 |
| Total current liabilities | US$ in thousands | 10,409,000 | 10,744,000 | 9,558,000 | 8,548,000 | 8,238,000 |
| Working capital turnover | 2.94 | 2.88 | 2.61 | 2.29 | 2.62 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,226,000K ÷ ($16,260,000K – $10,409,000K)
= 2.94
Corteva Inc's working capital turnover ratio has shown fluctuations over the past five years. The ratio indicates how efficiently the company is generating revenue from its working capital. A higher ratio suggests that Corteva is utilizing its working capital effectively to generate sales.
Analyzing the trend, we observe an overall improvement in the working capital turnover ratio from 2.29 in 2020 to 2.94 in 2023. This signifies that Corteva has been able to optimize its working capital more efficiently in recent years to support its revenue generation activities.
While the ratio decreased from 2019 to 2020, it rebounded and saw steady growth in the subsequent years. This indicates that Corteva has managed to enhance its operational efficiency and effectiveness in utilizing working capital resources for revenue generation.
Overall, the upward trend in the working capital turnover ratio reflects positively on Corteva's ability to efficiently convert its working capital investments into sales revenue. It suggests that the company has become more adept at managing its short-term assets and liabilities to support its core operations.
Peer comparison
Dec 31, 2023