Crane NXT Co (CXT)
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 | 1,905,100 | 3,921,400 | 3,903,600 | 3,885,200 | 3,913,800 | 2,311,100 | 2,869,800 | 3,391,300 | 3,299,400 | 3,212,500 | 3,005,200 | 2,794,000 | 2,761,300 | 2,915,200 | 3,001,000 | 3,198,300 | 3,283,100 | 3,285,200 | 3,368,700 | 3,378,100 |
| Total current assets | US$ in thousands | 644,400 | 625,200 | 701,200 | 1,695,800 | 623,300 | 1,482,300 | 1,728,400 | 1,652,300 | 1,543,100 | 1,761,500 | 1,672,300 | 1,642,400 | 1,573,700 | 1,622,100 | 1,629,300 | 1,446,200 | 1,499,900 | 1,456,900 | 1,379,900 | 1,371,300 |
| Total current liabilities | US$ in thousands | 334,400 | 312,600 | 316,900 | 974,500 | 631,400 | 1,075,800 | 845,300 | 797,800 | 789,300 | 765,200 | 758,800 | 1,034,600 | 1,056,600 | 1,143,100 | 1,227,200 | 1,057,600 | 916,700 | 649,000 | 634,600 | 703,700 |
| Working capital turnover | 6.15 | 12.54 | 10.16 | 5.39 | — | 5.69 | 3.25 | 3.97 | 4.38 | 3.22 | 3.29 | 4.60 | 5.34 | 6.09 | 7.46 | 8.23 | 5.63 | 4.07 | 4.52 | 5.06 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,905,100K ÷ ($644,400K – $334,400K)
= 6.15
Crane NXT Co's working capital turnover ratio has fluctuated significantly over the past few quarters. It measures how efficiently the company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Looking at the trend, the working capital turnover ratio was relatively stable in the first half of 2020, ranging between 5.06 and 6.09. It saw a significant increase in the second half of 2020 and continued to rise through the first half of 2021, reaching a peak of 12.54 in September 2021.
However, the ratio dropped sharply in the subsequent quarter to 3.22, indicating a decrease in the efficiency of working capital utilization. From that point onwards, the ratio showed some recovery but remained volatile, fluctuating between 3.22 and 10.16 throughout 2022 and the first three quarters of 2023.
The lack of consistency in the working capital turnover ratio suggests that Crane NXT Co may have experienced challenges in managing its working capital effectively during this period. Further analysis of the company's financial performance and working capital management practices is recommended to understand the underlying reasons for these fluctuations and to identify areas for improvement.
Peer comparison
Dec 31, 2023