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