Dana Inc (DAN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,284,000 | 10,555,000 | 10,156,000 | 8,945,000 | 7,106,000 |
| Total current assets | US$ in thousands | 494,000 | 4,103,000 | 3,829,000 | 3,586,000 | 3,288,000 |
| Total current liabilities | US$ in thousands | 1,782,000 | 2,602,000 | 2,479,000 | 2,174,000 | 1,941,000 |
| Working capital turnover | — | 7.03 | 7.52 | 6.33 | 5.28 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,284,000K ÷ ($494,000K – $1,782,000K)
= —
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. The higher the ratio, the better the company is at managing its working capital.
Analyzing Dana Inc's working capital turnover over the years, we observe a positive trend from 5.28 in 2020 to 7.03 in 2023. This indicates that the company has been improving its efficiency in utilizing its working capital to generate sales. However, there is missing data for 2024, so we cannot determine the trend for that year.
A higher working capital turnover ratio suggests that Dana Inc is able to quickly convert its working capital into sales, which is a positive indicator of efficiency in managing its current assets and liabilities. It shows that the company is effectively using its resources to generate sales revenue.
Overall, based on the trend observed in the working capital turnover ratio, Dana Inc has shown improvement in its working capital management and efficiency in generating sales revenue over the specified period.
Peer comparison
Dec 31, 2024