Dril-Quip Inc (DRQ)
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 | 424,060 | 394,530 | 365,427 | 369,798 | 362,070 | 343,168 | 338,024 | 324,843 | 322,945 | 332,267 | 340,565 | 350,214 | 364,973 | 386,193 | 403,125 | 416,487 | 414,806 | 403,687 | 388,717 | 379,770 |
| Total current assets | US$ in thousands | 719,717 | 709,040 | 755,156 | 752,111 | 750,024 | 743,837 | 747,863 | 717,376 | 745,052 | 827,271 | 849,286 | 844,721 | 863,193 | 863,002 | 848,212 | 826,291 | 880,489 | 878,719 | 868,143 | 843,340 |
| Total current liabilities | US$ in thousands | 117,703 | 106,735 | 88,124 | 83,360 | 87,555 | 89,287 | 84,856 | 70,321 | 93,663 | 91,826 | 106,535 | 95,307 | 85,512 | 100,982 | 113,711 | 93,446 | 96,940 | 96,533 | 87,097 | 70,729 |
| Working capital turnover | 0.70 | 0.66 | 0.55 | 0.55 | 0.55 | 0.52 | 0.51 | 0.50 | 0.50 | 0.45 | 0.46 | 0.47 | 0.47 | 0.51 | 0.55 | 0.57 | 0.53 | 0.52 | 0.50 | 0.49 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $424,060K ÷ ($719,717K – $117,703K)
= 0.70
A review of Dril-Quip, Inc.'s working capital turnover ratio over the past eight quarters shows a fluctuating trend. The working capital turnover has ranged from 0.50 to 0.70 during this period. In Q4 2023, the working capital turnover ratio stood at 0.70, reflecting an improvement compared to the previous quarters.
A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to generate revenue. It suggests that Dril-Quip, Inc. is effectively using its current assets to support its operations and drive sales during Q4 2023.
The trend of increasing working capital turnover ratios over the past quarters indicates an improvement in the company's working capital management efficiency. This could be attributed to better inventory control, more efficient receivables collection, or effective payment of liabilities.
Overall, the increasing trend in working capital turnover ratio for Dril-Quip, Inc. suggests a positive operational performance and improved financial management in utilizing its resources effectively to drive revenue growth.
Peer comparison
Dec 31, 2023