Curtiss-Wright Corporation (CW)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,121,200 | 2,796,860 | 2,510,060 | 2,464,460 | 2,391,340 |
| Total current assets | US$ in thousands | 1,849,590 | 1,717,080 | 1,516,010 | 1,307,810 | 1,300,820 |
| Total current liabilities | US$ in thousands | 1,095,950 | 806,544 | 981,045 | 734,867 | 810,377 |
| Working capital turnover | 4.14 | 3.07 | 4.69 | 4.30 | 4.88 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,121,200K ÷ ($1,849,590K – $1,095,950K)
= 4.14
Working capital turnover is a financial ratio that reflects how efficiently a company utilizes its working capital to generate revenue. Looking at the data provided for Curtiss-Wright Corporation, we observe the following trends in working capital turnover:
1. The working capital turnover has shown some fluctuations over the years. It was 4.88 in 2020, decreased to 4.30 in 2021, increased to 4.69 in 2022, dropped sharply to 3.07 in 2023, and then recovered to 4.14 in 2024.
2. A higher working capital turnover ratio generally indicates that the company is using its working capital more efficiently to generate sales. In this case, the company saw a decline in efficiency in 2021, followed by a significant drop in 2023, before recovering in 2024.
3. The decrease in working capital turnover in 2021 and 2023 could indicate potential issues with managing working capital efficiently during those periods. However, the improvement seen in 2024 suggests that the company may have taken steps to address these concerns.
4. It is essential for Curtiss-Wright Corporation to closely monitor its working capital turnover ratio and continue to strive for higher efficiency in utilizing its working capital to support its operations and revenue generation.
In summary, while Curtiss-Wright Corporation experienced fluctuations in its working capital turnover ratio over the years, the company should focus on maintaining a healthy balance between working capital management and revenue generation to sustain long-term financial stability and growth.
Peer comparison
Dec 31, 2024