Dana Inc (DAN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,387,000 | 10,032,000 | 8,787,000 | 6,968,000 | 8,478,000 |
| Total current assets | US$ in thousands | 4,103,000 | 3,829,000 | 3,586,000 | 3,288,000 | 3,162,000 |
| Total current liabilities | US$ in thousands | 2,602,000 | 2,479,000 | 2,174,000 | 1,941,000 | 1,845,000 |
| Working capital turnover | 6.92 | 7.43 | 6.22 | 5.17 | 6.44 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,387,000K ÷ ($4,103,000K – $2,602,000K)
= 6.92
The working capital turnover ratio of Dana Inc has been fluctuating over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio suggests better efficiency in utilizing working capital.
In 2023, the working capital turnover ratio was 7.03, a slight decrease from 7.52 in 2022. This indicates that the company generated $7.03 in sales for every $1 of working capital invested in the business. Despite the decrease, the ratio remains relatively high, reflecting good efficiency in utilizing working capital.
Comparing the ratios over the five-year period, there is a general upward trend from 2019 to 2022, with a peak at 7.52 in 2022, before declining slightly in 2023. This suggests an improvement in the company's efficiency in utilizing working capital during this period.
Overall, Dana Inc has shown consistent efficiency in utilizing its working capital over the past five years, with the ratio staying above 5 in each year. This indicates effective management of working capital resources to generate sales revenue.
Peer comparison
Dec 31, 2023