Dow Inc (DOW)
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 | 44,622,000 | 45,860,000 | 49,245,000 | 53,489,000 | 56,902,000 | 59,407,000 | 60,129,000 | 58,350,000 | 54,968,000 | 51,310,000 | 46,185,000 | 40,654,000 | 38,542,000 | 38,040,000 | 39,092,000 | 41,752,000 | 42,951,000 | |||
| Total current assets | US$ in thousands | 17,614,000 | 18,298,000 | 18,549,000 | 19,356,000 | 20,477,000 | 19,777,000 | 21,769,000 | 22,165,000 | 20,848,000 | 20,393,000 | 20,352,000 | 19,163,000 | 19,084,000 | 17,789,000 | 16,997,000 | 18,138,000 | 16,815,000 | 18,949,000 | 18,637,000 | 25,661,000 |
| Total current liabilities | US$ in thousands | 9,957,000 | 10,248,000 | 9,649,000 | 10,489,000 | 11,331,000 | 12,315,000 | 13,309,000 | 13,054,000 | 13,226,000 | 12,793,000 | 12,308,000 | 11,354,000 | 11,108,000 | 10,207,000 | 9,786,000 | 11,121,000 | 10,679,000 | 11,201,000 | 11,605,000 | 15,373,000 |
| Working capital turnover | 5.83 | 5.70 | 5.53 | 6.03 | 6.22 | 7.96 | 7.11 | 6.40 | 7.21 | 6.75 | 5.74 | 5.21 | 4.83 | 5.02 | 5.42 | 5.95 | 7.00 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $44,622,000K ÷ ($17,614,000K – $9,957,000K)
= 5.83
The working capital turnover ratio for Dow Inc has shown fluctuations over the past eight quarters. The ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively using its working capital to support sales growth.
In the recent quarters, the working capital turnover ratio has ranged between 5.53 and 6.03, which suggests a relatively stable performance in utilizing working capital to generate sales. However, it is important to note the significant decline in the ratio from the third quarter of 2022 to the first quarter of 2023, where it dropped from 7.96 to 6.40, indicating a potential decrease in the efficiency of working capital utilization.
While the company experienced a spike in the ratio in the third quarter of 2022, reaching 7.96, it followed by a downward trend over the subsequent quarters. This pattern may indicate fluctuations in operating or sales activities impacting the efficiency of working capital management.
Overall, Dow Inc's working capital turnover ratio has displayed some variability, and further analysis of the company's operational and financial activities would be necessary to understand the underlying reasons for these fluctuations and their potential impact on the company's overall financial performance.
Peer comparison
Dec 31, 2023