Dana Inc (DAN)
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 | 10,284,000 | 10,443,000 | 10,636,000 | 10,646,000 | 10,555,000 | 10,616,000 | 10,482,000 | 10,320,000 | 10,156,000 | 9,874,000 | 9,543,000 | 9,162,000 | 8,945,000 | 8,780,000 | 8,570,000 | 7,443,000 | 7,106,000 | 6,985,000 | 7,155,000 | 8,383,000 |
| Total current assets | US$ in thousands | 3,703,000 | 4,054,000 | 4,076,000 | 4,102,000 | 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 |
| Total current liabilities | US$ in thousands | 2,561,000 | 2,716,000 | 2,758,000 | 2,565,000 | 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 |
| Working capital turnover | 9.01 | 7.80 | 8.07 | 6.93 | 7.03 | 6.85 | 6.51 | 7.61 | 7.52 | 7.62 | 7.08 | 6.67 | 6.33 | 6.14 | 5.91 | 5.31 | 5.28 | 3.95 | 4.30 | 6.76 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,284,000K ÷ ($3,703,000K – $2,561,000K)
= 9.01
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.
Looking at the data provided for Dana Inc, we observe fluctuations in the working capital turnover ratio over the quarters. The ratio was relatively high at 6.76 on March 31, 2020, indicating that the company efficiently used its working capital to generate revenue. However, it decreased to 3.95 by September 30, 2020, suggesting a potential inefficiency in managing working capital during that period.
The ratio improved in subsequent quarters, reaching a peak of 9.01 by December 31, 2024. This increase indicates enhanced efficiency in utilizing working capital to drive sales growth. The ratio showed some fluctuation in between these periods but generally trended upwards, which is a positive sign of operational efficiency and effectiveness in managing working capital.
Overall, the increasing trend in the working capital turnover ratio for Dana Inc indicates that the company has been more efficient in converting working capital into sales revenue over time. This improvement reflects positively on the company's financial management and operational performance.
Peer comparison
Dec 31, 2024