DTE Energy Company (DTE)
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 | 407,000 | 430,000 | 392,000 | 319,000 | 442,000 | 4,774,000 | 9,922,000 | 14,776,000 | 19,228,000 | 19,399,000 | 17,863,000 | 16,168,000 | 15,369,000 | 14,010,000 | 13,579,000 | 12,933,000 | 12,177,000 | 12,037,000 | 11,872,000 | 12,177,000 |
| Total current assets | US$ in thousands | 3,607,000 | 5,617,000 | 4,516,000 | 3,752,000 | 3,539,000 | 3,420,000 | 3,203,000 | 3,537,000 | 4,180,000 | 4,310,000 | 4,093,000 | 3,610,000 | 3,317,000 | 3,494,000 | 6,402,000 | 4,376,000 | 3,498,000 | 3,821,000 | 3,497,000 | 3,526,000 |
| Total current liabilities | US$ in thousands | 5,106,000 | 6,787,000 | 6,507,000 | 4,975,000 | 5,883,000 | 4,045,000 | 3,596,000 | 4,036,000 | 5,173,000 | 5,466,000 | 6,895,000 | 5,680,000 | 6,346,000 | 3,433,000 | 3,737,000 | 2,595,000 | 2,691,000 | 3,417,000 | 4,196,000 | 3,972,000 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | 229.67 | 5.10 | 7.26 | 15.09 | 29.79 | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $407,000K ÷ ($3,607,000K – $5,106,000K)
= —
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital.
Reviewing the data provided for DTE Energy Company for the periods up to December 31, 2021, we observe that the working capital turnover fluctuated significantly. The ratio was not calculable for March 31 and June 30, 2020. It stood at 29.79 for September 30, 2020, indicating that the company generated $29.79 in sales for every dollar of working capital invested. The ratio decreased to 15.09 by December 31, 2020 and continued to decline to 7.26 by March 31, 2021, and further to 5.10 by June 30, 2021.
A notable increase in efficiency was observed for September 30, 2021, where the working capital turnover spiked to 229.67, suggesting a significant improvement in how working capital was being utilized to generate sales. However, the ratio was not available for the subsequent reporting periods up to December 31, 2022.
It is important to keep in mind that an extremely high or low working capital turnover ratio may signify potential issues. A very high ratio may indicate an inefficient use of working capital or extended credit terms to customers, while an excessively low ratio may suggest excessive levels of inventory or accounts receivable, leading to liquidity challenges.
Given the fluctuations in DTE Energy Company's working capital turnover ratio over the reviewed periods, further analysis and context are needed to understand the efficiency and financial health of the company during those times.
Peer comparison
Dec 31, 2024