Dover Corporation (DOV)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,745,910 | 8,438,130 | 8,508,090 | 7,907,080 | 6,683,760 |
| Total current assets | US$ in thousands | 4,484,500 | 3,390,240 | 3,423,460 | 3,061,710 | 2,619,190 |
| Total current liabilities | US$ in thousands | 2,196,530 | 2,413,770 | 2,773,270 | 2,250,340 | 1,738,800 |
| Working capital turnover | 3.39 | 8.64 | 13.09 | 9.75 | 7.59 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,745,910K ÷ ($4,484,500K – $2,196,530K)
= 3.39
The working capital turnover for Dover Corporation has shown fluctuating trends over the past five years. In December 2020, the working capital turnover was 7.59 times, indicating that the company generated $7.59 in revenue for every dollar of working capital invested. This ratio improved in December 2021 to 9.75, showing increased efficiency in utilizing working capital.
The peak in working capital turnover was observed in December 2022, reaching 13.09, suggesting a more effective management of working capital during that period. However, there was a notable decline in December 2023, with the ratio dropping to 8.64, potentially signaling challenges in working capital management.
The most recent data for December 2024 shows a significant decrease in the working capital turnover to 3.39, which may raise concerns about the company's ability to generate revenue efficiently relative to its working capital investments. It is important for Dover Corporation to closely monitor its working capital turnover and implement strategies to ensure optimal utilization of working capital resources for future growth and sustainability.
Peer comparison
Dec 31, 2024