Dow Inc (DOW)
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 | 42,964,000 | 43,180,000 | 43,031,000 | 43,536,000 | 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 |
| Total current assets | US$ in thousands | 16,590,000 | 17,977,000 | 18,053,000 | 18,448,000 | 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 |
| Total current liabilities | US$ in thousands | 10,288,000 | 10,827,000 | 10,308,000 | 10,249,000 | 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 |
| Working capital turnover | 6.82 | 6.04 | 5.56 | 5.31 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $42,964,000K ÷ ($16,590,000K – $10,288,000K)
= 6.82
The working capital turnover for Dow Inc has exhibited fluctuations over the reporting periods provided. The ratio measures how effectively the company is using its working capital to generate revenue.
From March 31, 2020, to December 31, 2021, the working capital turnover gradually increased from 5.95 to 7.21, indicating an improvement in the company's efficiency in utilizing its working capital to support its operations.
However, the ratio decreased to 6.22 by the end of December 31, 2022, showing a slight decline in efficiency. Subsequently, the ratio fluctuated between 5.31 and 6.82 from March 31, 2023, to December 31, 2024, suggesting some variability in how effectively the company managed its working capital during these periods.
Overall, a higher working capital turnover ratio indicates that Dow Inc is efficiently using its working capital to generate sales, while a lower ratio may suggest inefficiencies in managing its working capital. Monitoring this ratio over time can provide insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024