DT Midstream Inc (DTM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 981,000 | 976,000 | 962,000 | 942,000 | 922,000 | 921,000 | 922,000 | 925,000 | 920,000 | 900,000 | 877,000 | 858,000 | 840,000 | 825,000 | 816,000 | 782,000 | 754,000 |
| Total current assets | US$ in thousands | 310,000 | 249,000 | 256,000 | 229,000 | 272,000 | 200,000 | 210,000 | 249,000 | 262,000 | 533,000 | 515,000 | 442,000 | 360,000 | 310,000 | 180,000 | 184,000 | 42,000 |
| Total current liabilities | US$ in thousands | 426,000 | 262,000 | 306,000 | 322,000 | 434,000 | 424,000 | 361,000 | 698,000 | 614,000 | 249,000 | 180,000 | 188,000 | 177,000 | 195,000 | 107,000 | 80,000 | 3,023,000 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | 3.17 | 2.62 | 3.38 | 4.59 | 7.17 | 11.18 | 7.52 | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $981,000K ÷ ($310,000K – $426,000K)
= —
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher turnover ratio is generally considered favorable as it indicates that the company is effectively managing its working capital and generating more sales with the capital invested.
Based on the provided data for DT Midstream Inc, the working capital turnover ratio has shown some fluctuations over the reporting periods. The ratio was not available for December 31, 2020, and subsequently increased to 7.52 by March 31, 2021, indicating that the company generated $7.52 in revenue for every dollar of working capital invested.
The ratio further improved to 11.18 by June 30, 2021, which suggests that the company was able to generate even more revenue with its working capital during that period. However, the ratio started to decline in the following periods, dropping to 4.59 by December 31, 2021, and decreasing further to 3.38 by March 31, 2022.
Subsequently, the working capital turnover ratio continued to decrease, reaching 2.62 by June 30, 2022, before showing a slight improvement to 3.17 by September 30, 2022. The ratio was not available for the remaining reporting periods in 2022 and beyond.
Overall, the trend in the working capital turnover ratio for DT Midstream Inc indicates some variability in the company's efficiency in utilizing its working capital to generate sales. It is essential for the company to closely monitor and manage its working capital to ensure optimal utilization and sustainable growth in revenue generation.
Peer comparison
Dec 31, 2024