Crane NXT Co (CXT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,486,800 | 1,391,300 | 3,374,900 | 3,408,000 | 2,936,900 |
| Total current assets | US$ in thousands | 642,500 | 644,400 | 1,751,900 | 1,543,100 | 1,573,700 |
| Total current liabilities | US$ in thousands | 562,400 | 334,400 | 1,488,200 | 789,300 | 1,056,600 |
| Working capital turnover | 18.56 | 4.49 | 12.80 | 4.52 | 5.68 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,486,800K ÷ ($642,500K – $562,400K)
= 18.56
Crane NXT Co's working capital turnover has shown variability over the past five years. The ratio was 5.68 in December 31, 2020, indicating that the company generated $5.68 in revenue for every dollar of working capital invested. In the following year, the ratio decreased to 4.52, suggesting a decline in the efficiency of utilizing working capital.
However, by December 31, 2022, the working capital turnover significantly improved to 12.80, illustrating a more efficient utilization of working capital to generate revenue. This spike in efficiency could be attributed to better management of current assets and liabilities or improved sales performance.
Subsequently, the ratio dropped to 4.49 by December 31, 2023, hinting at potential challenges in managing working capital effectively. However, the following year saw a remarkable increase in the working capital turnover to 18.56 by December 31, 2024, indicating a substantial improvement in utilizing working capital efficiently to generate revenue.
Overall, the trend in working capital turnover for Crane NXT Co shows fluctuations, indicating the company's varying ability to generate revenue from its working capital investments. Further analysis of the underlying factors driving these fluctuations would be beneficial in understanding the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024