CVR Energy Inc (CVI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,610,000 | 9,247,000 | 10,896,000 | 7,242,000 | 3,930,000 |
| Total current assets | US$ in thousands | 1,824,000 | 2,179,000 | 1,593,000 | 1,369,000 | 1,402,000 |
| Total current liabilities | US$ in thousands | 1,098,000 | 1,682,000 | 1,439,000 | 1,156,000 | 659,000 |
| Working capital turnover | 10.48 | 18.61 | 70.75 | 34.00 | 5.29 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,610,000K ÷ ($1,824,000K – $1,098,000K)
= 10.48
The working capital turnover of CVR Energy Inc has shown significant fluctuations over the period from December 31, 2020, to December 31, 2024. The ratio increased sharply from 5.29 in 2020 to 70.75 in 2022, indicating a substantial improvement in the efficiency of CVR Energy Inc's working capital management. This suggests that the company was able to generate sales revenue much more efficiently relative to its working capital during 2022.
However, the ratio dropped to 18.61 in 2023 and further decreased to 10.48 in 2024. These declines may indicate potential inefficiencies in the utilization of working capital compared to generating sales during these years, which could be a cause for concern. It may be worth investigating the reasons behind these decreases and implementing corrective measures to improve working capital efficiency in the coming periods.
Overall, the working capital turnover ratio for CVR Energy Inc has experienced notable fluctuations, underscoring the importance of closely monitoring and managing working capital efficiency to support sustainable business operations and financial performance.
Peer comparison
Dec 31, 2024