Dover Corporation (DOV)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,185,610 | 8,361,500 | 8,531,230 | 8,453,060 | 8,438,140 | 8,471,560 | 8,476,580 | 8,535,210 | 8,508,090 | 8,358,150 | 8,218,130 | 8,091,090 | 7,907,090 | 7,698,240 | 7,428,230 | 6,895,730 | 6,683,770 | 6,678,970 | 6,756,050 | 7,067,580 |
| Total current assets | US$ in thousands | 4,484,500 | 3,745,900 | 3,265,970 | 3,909,940 | 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 |
| Total current liabilities | US$ in thousands | 2,196,530 | 2,387,200 | 2,134,160 | 2,984,440 | 2,499,840 | 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 |
| Working capital turnover | 3.58 | 6.15 | 7.54 | 9.13 | 9.48 | 6.68 | 8.56 | 10.57 | 13.09 | 17.12 | 7.88 | 8.21 | 9.75 | 5.95 | 6.41 | 6.63 | 7.59 | 7.96 | 9.85 | 11.56 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,185,610K ÷ ($4,484,500K – $2,196,530K)
= 3.58
Dover Corporation's working capital turnover has displayed a declining trend over the past few years, indicating a decrease in the efficiency of the company's working capital management. The working capital turnover ratio, which measures the company's ability to generate revenue from its working capital, was at its peak of 17.12 on September 30, 2022.
However, since then, the ratio has been on a downward trajectory, dropping to 3.58 by the end of December 31, 2024. This decline could suggest that the company is not effectively utilizing its current assets to support its operations or is facing challenges in converting working capital into sales.
It is essential for Dover Corporation to address this decreasing trend in working capital turnover to improve its overall efficiency and financial performance. Management may need to focus on optimizing inventory levels, managing accounts receivable and payable effectively, and streamlining operational processes to enhance working capital turnover and boost profitability in the long run.
Peer comparison
Dec 31, 2024