Dana Inc (DAN)

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 10,387,000 10,468,000 10,344,000 10,194,000 10,032,000 9,746,000 9,417,000 9,009,000 8,787,000 8,656,000 8,436,000 7,337,000 7,009,000 6,882,000 7,060,000 8,285,000 8,508,000 8,503,000 8,322,000 8,081,000
Total current assets US$ in thousands 4,103,000 4,220,000 4,331,000 4,233,000 3,829,000 3,954,000 3,953,000 3,994,000 3,586,000 3,603,000 3,650,000 3,573,000 3,288,000 3,604,000 3,042,000 3,307,000 3,162,000 3,273,000 3,370,000 3,443,000
Total current liabilities US$ in thousands 2,602,000 2,670,000 2,720,000 2,876,000 2,479,000 2,658,000 2,605,000 2,620,000 2,174,000 2,173,000 2,200,000 2,170,000 1,941,000 1,837,000 1,379,000 2,067,000 1,845,000 1,990,000 2,064,000 2,113,000
Working capital turnover 6.92 6.75 6.42 7.51 7.43 7.52 6.99 6.56 6.22 6.05 5.82 5.23 5.20 3.89 4.25 6.68 6.46 6.63 6.37 6.08

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,387,000K ÷ ($4,103,000K – $2,602,000K)
= 6.92

The working capital turnover for Dana Inc has shown fluctuations over the past eight quarters, ranging from a low of 6.51 in Q2 2023 to a high of 7.61 in Q1 2023. Overall, the company has maintained a relatively stable working capital turnover ratio, indicating efficient utilization of working capital to generate sales revenue. The average working capital turnover for the period under review is around 7.11.

A higher working capital turnover ratio suggests that Dana Inc is effectively managing its working capital to generate sales, indicating strong operational efficiency. This implies that the company is able to convert its invested working capital into sales revenue multiple times within a given period.

On the other hand, a lower working capital turnover ratio may indicate inefficiencies in managing working capital, potentially leading to excess inventory or accounts receivable, which could tie up cash and negatively impact the company's liquidity.

Overall, the trend of Dana Inc's working capital turnover ratio indicates a sound working capital management strategy, contributing to the company's operational effectiveness and financial performance. It is important for the company to continue monitoring and optimizing its working capital turnover to sustain efficient operations and improve overall financial health.


Peer comparison

Dec 31, 2023