Dover Corporation (DOV)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,306,830 | 8,343,940 | 8,351,560 | 8,417,010 | 8,391,630 | 8,247,240 | 8,110,580 | 7,983,870 | 7,805,410 | 7,618,220 | 7,346,360 | 6,811,020 | 6,601,570 | 6,596,770 | 6,702,130 | 7,043,160 | 7,136,400 | 7,169,760 | 7,091,820 | 7,079,200 |
| Total current assets | US$ in thousands | 3,390,240 | 3,456,880 | 3,414,680 | 3,315,850 | 3,423,460 | 3,377,040 | 3,591,000 | 3,232,480 | 3,061,710 | 3,299,420 | 3,059,530 | 2,815,080 | 2,619,190 | 2,604,980 | 2,799,440 | 2,706,000 | 2,548,430 | 2,585,990 | 2,623,250 | 2,529,470 |
| Total current liabilities | US$ in thousands | 2,413,770 | 2,187,780 | 2,424,100 | 2,508,490 | 2,773,270 | 2,888,750 | 2,547,640 | 2,246,920 | 2,250,340 | 2,005,880 | 1,901,410 | 1,775,360 | 1,738,800 | 1,766,370 | 2,113,760 | 2,094,360 | 1,748,090 | 1,825,300 | 1,955,120 | 1,946,920 |
| Working capital turnover | 8.51 | 6.57 | 8.43 | 10.43 | 12.91 | 16.89 | 7.77 | 8.10 | 9.62 | 5.89 | 6.34 | 6.55 | 7.50 | 7.87 | 9.77 | 11.52 | 8.92 | 9.43 | 10.61 | 12.15 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,306,830K ÷ ($3,390,240K – $2,413,770K)
= 8.51
The working capital turnover of Dover Corp. has fluctuated over the past eight quarters, ranging from a low of 6.68 in Q3 2023 to a high of 17.12 in Q3 2022. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.
The significant decrease in working capital turnover from Q3 2022 to Q3 2023 might suggest that Dover Corp. is facing challenges in efficiently utilizing its working capital to drive sales. This decrease could be a result of various factors such as inefficient inventory management, slow accounts receivable collection, or excessive investment in current assets.
On the other hand, the increase in working capital turnover from Q3 2023 to Q4 2023 could indicate improvements in the company's working capital management, leading to a more efficient conversion of working capital into sales.
Overall, it is essential for Dover Corp. to closely monitor its working capital turnover ratio and identify the underlying reasons for any significant fluctuations to optimize its working capital management and enhance operational efficiency.
Peer comparison
Dec 31, 2023