Deere & Company (DE)
Working capital turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 51,716,000 | 61,251,000 | 52,577,000 | 44,024,000 | 35,540,000 |
| Total current assets | US$ in thousands | 14,417,000 | 15,618,000 | 13,269,000 | 14,798,000 | 12,065,000 |
| Total current liabilities | US$ in thousands | 13,561,000 | 17,964,000 | 12,592,000 | 10,919,000 | 21,000 |
| Working capital turnover | 60.42 | — | 77.66 | 11.35 | 2.95 |
October 27, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $51,716,000K ÷ ($14,417,000K – $13,561,000K)
= 60.42
Deere & Company's working capital turnover has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on October 27, 2024, the working capital turnover ratio stood at a significant 60.42 times, indicating that the company converted its working capital into revenue 60.42 times during the year. This is a substantial increase compared to the previous year's figure, demonstrating a notable improvement in the efficiency of managing its working capital.
However, it's worth noting that in the fiscal year ending on October 30, 2022, the working capital turnover ratio was even higher at 77.66 times, suggesting an exceptional efficiency in utilizing its working capital to generate sales. This implies that Deere & Company effectively leveraged its working capital resources to drive revenue generation during that period.
On the contrary, in the fiscal year ending on October 31, 2021, the working capital turnover ratio dropped significantly to 11.35 times, indicating a decrease in the company's ability to efficiently convert working capital into sales. The low ratio in this year suggests that the company may have faced challenges in managing its working capital effectively to support its operational activities.
Furthermore, the working capital turnover ratio was notably lower at 2.95 times in the fiscal year ending on November 1, 2020, highlighting a continued struggle in optimizing the utilization of working capital to drive revenue generation.
Overall, the fluctuation in Deere & Company's working capital turnover over the past five years indicates varying levels of efficiency in managing and leveraging its working capital resources to support its operations and generate revenue. The company's ability to maintain a high working capital turnover ratio is crucial for ensuring optimal financial performance and sustainable growth in the long run.
Peer comparison
Oct 27, 2024