Dupont De Nemours Inc (DD)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	12,386,000	12,068,000	13,017,000	12,566,000	20,397,000
Total current assets	US$ in thousands	6,364,000	7,514,000	11,315,000	8,065,000	10,877,000
Total current liabilities	US$ in thousands	4,801,000	3,098,000	3,848,000	4,262,000	4,699,000
Working capital turnover		7.92	2.73	1.74	3.30	3.30

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,386,000K ÷ ($6,364,000K – $4,801,000K)
= 7.92

Dupont De Nemours Inc's working capital turnover has shown some fluctuations over the period under consideration. In 2020 and 2021, the company maintained a consistent working capital turnover ratio of 3.30, indicating that it generated $3.30 in revenue for every dollar of working capital invested.

However, in 2022, the ratio dropped to 1.74, signaling a decrease in efficiency in utilizing its working capital to generate sales. This decline may raise concerns about the company's ability to efficiently manage its day-to-day operations and liquidity.

In 2023, there was an improvement in the working capital turnover ratio to 2.73, suggesting a better utilization of working capital compared to the previous year. This rebound could indicate enhanced operational efficiency or changes in the company's working capital management strategies.

Notably, in 2024, Dupont De Nemours Inc experienced a significant surge in its working capital turnover to 7.92. This sharp increase may point towards improved efficiency in working capital management, potentially driven by enhanced inventory turnover, quicker receivables collection, or more effective payment of liabilities.

Overall, the fluctuations in Dupont De Nemours Inc's working capital turnover ratio highlight the importance of closely monitoring working capital management practices to ensure optimal operational efficiency and liquidity.