CoreCivic Inc (CXW)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,961,646 | 1,973,599 | 1,965,746 | 1,939,319 | 1,896,635 | 1,876,822 | 1,857,328 | 1,850,343 | 1,845,329 | 1,846,029 | 1,853,012 | 1,860,886 | 1,862,616 | 1,863,960 | 1,861,032 | 1,869,102 | 1,905,485 | 1,929,817 | 1,970,073 | 1,987,726 |
| Total current assets | US$ in thousands | 449,818 | 416,120 | 383,010 | 426,300 | 474,914 | 419,965 | 353,722 | 355,972 | 513,670 | 529,963 | 505,244 | 680,760 | 627,384 | 729,442 | 491,249 | 753,378 | 717,122 | 593,987 | 668,406 | 659,901 |
| Total current liabilities | US$ in thousands | 285,797 | 274,702 | 266,466 | 364,553 | 297,454 | 304,367 | 273,638 | 271,938 | 450,751 | 473,227 | 474,813 | 363,075 | 340,968 | 387,363 | 316,603 | 385,408 | 313,405 | 317,376 | 293,947 | 353,256 |
| Working capital turnover | 11.96 | 13.96 | 16.87 | 31.41 | 10.69 | 16.24 | 23.19 | 22.02 | 29.33 | 32.54 | 60.89 | 5.86 | 6.50 | 5.45 | 10.66 | 5.08 | 4.72 | 6.98 | 5.26 | 6.48 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,961,646K ÷ ($449,818K – $285,797K)
= 11.96
CoreCivic Inc's working capital turnover has displayed fluctuations over the periods outlined. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates a more efficient use of working capital.
From March 2020 to June 2021, the company's working capital turnover ranged between 5.08 and 10.66, showing relatively stable performance with an increase in efficiency during the second half of 2020. However, there was a significant spike in June 2022, reaching 60.89, followed by another sharp increase in September 2022 to 32.54, indicating a substantial improvement in utilizing working capital to generate revenue.
Subsequently, the ratio declined but remained relatively high compared to earlier periods, indicating a sustained level of efficiency in utilizing working capital. The ratio dropped to 10.69 by December 2023, before spiking again to 31.41 by March 2024. This increase was followed by a downward trend in the following quarters, with the ratio stabilizing around 11.96 by December 2024.
Overall, CoreCivic Inc's working capital turnover has shown significant variability, with periods of both high and low efficiency in utilizing working capital. It is essential for the company to maintain a balance between leveraging working capital effectively to support operations and managing it efficiently to generate sustainable revenue growth.
Peer comparison
Dec 31, 2024