Dupont De Nemours Inc (DD)
Working capital turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 12,081,000 | 13,171,000 | 16,791,000 | 20,397,000 | 21,512,000 |
Total current assets | US$ in thousands | 7,514,000 | 11,270,000 | 14,303,000 | 29,008,000 | 9,999,000 |
Total current liabilities | US$ in thousands | 3,098,000 | 3,733,000 | 4,931,000 | 12,226,000 | 8,346,000 |
Working capital turnover | 2.74 | 1.75 | 1.79 | 1.22 | 13.01 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,081,000K ÷ ($7,514,000K – $3,098,000K)
= 2.74
The working capital turnover ratio for DuPont de Nemours Inc has fluctuated over the past five years. In 2019, the company had a high working capital turnover of 13.01, indicating that it generated $13.01 in revenue for every dollar of working capital invested. This high ratio suggests that the company efficiently managed its working capital to support revenue generation.
In 2020, the working capital turnover decreased to 3.30, indicating a decline in efficiency in utilizing working capital to generate revenue. However, the ratio was still relatively healthy, suggesting effective management of working capital.
The ratio further decreased in 2021 to 4.38, before dropping significantly in 2022 to 1.73. These declines indicate potential challenges in efficiently utilizing working capital to support revenue generation during these years.
In 2023, the working capital turnover increased to 2.73, showing a slight improvement from the previous year but still below the levels seen in 2019 and 2020.
Overall, the fluctuation in the working capital turnover ratio for DuPont de Nemours Inc over the five-year period suggests some variability in the company's ability to efficiently convert working capital into revenue. Further analysis would be required to understand the factors driving these changes and their implications for the company's financial performance.
Peer comparison
Dec 31, 2023