Dow Inc (DOW)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	42,964,000	44,622,000	56,902,000	54,968,000	38,542,000
Total current assets	US$ in thousands	16,590,000	17,614,000	20,477,000	20,848,000	19,084,000
Total current liabilities	US$ in thousands	10,288,000	9,957,000	11,331,000	13,226,000	11,108,000
Working capital turnover		6.82	5.83	6.22	7.21	4.83

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $42,964,000K ÷ ($16,590,000K – $10,288,000K)
= 6.82

The working capital turnover ratio for Dow Inc has shown varying trends over the past five years, indicating the company's efficiency in managing its working capital. The ratio increased from 4.83 in December 2020 to 7.21 in December 2021, suggesting that Dow Inc was able to generate $7.21 in revenue for every dollar of working capital invested during that period.

However, there was a slight decline in the ratio to 6.22 by the end of December 2022, indicating a potential decrease in efficiency in utilizing its working capital. Subsequently, the ratio further decreased to 5.83 by December 2023, signaling a continued trend of lower revenue generation in relation to its working capital.

Nevertheless, there was a notable improvement in the working capital turnover ratio by December 2024, rising to 6.82. This suggests that Dow Inc was able to enhance its efficiency in utilizing its working capital to generate revenue during that year.

Overall, the fluctuation in the working capital turnover ratio for Dow Inc highlights the company's ability to effectively manage its working capital and generate revenue, though some periods may have shown challenges in maintaining consistent efficiency. Analyzing trends in this ratio can provide valuable insights into the company's operational performance and financial health.