DXP Enterprises Inc (DXPE)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,802,040 | 1,678,600 | 1,480,830 | 1,113,920 | 1,005,270 |
| Total current assets | US$ in thousands | 661,874 | 648,554 | 516,114 | 404,574 | 406,583 |
| Total current liabilities | US$ in thousands | 243,984 | 224,165 | 212,901 | 181,062 | 144,139 |
| Working capital turnover | 4.31 | 3.96 | 4.88 | 4.98 | 3.83 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,802,040K ÷ ($661,874K – $243,984K)
= 4.31
Based on the data provided, the working capital turnover for DXP Enterprises Inc has shown some fluctuations over the years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
In December 31, 2020, the working capital turnover was 3.83, indicating that DXP Enterprises Inc generated $3.83 in revenue for every dollar of working capital invested. This ratio increased to 4.98 by December 31, 2021, suggesting improved efficiency in utilizing working capital to generate sales revenue. Subsequently, by December 31, 2022, the ratio slightly decreased to 4.88, still indicating a high level of efficiency in working capital management.
However, in December 31, 2023, the working capital turnover ratio declined to 3.96, which may suggest a possible decrease in efficiency in utilizing working capital during that period. The ratio improved again to 4.31 by December 31, 2024, indicating a rebound in efficiency.
Overall, the trend in the working capital turnover ratio for DXP Enterprises Inc shows variability with some fluctuations over the years. It is essential for the company to monitor and manage its working capital effectively to ensure optimal utilization and continued operational efficiency.
Peer comparison
Dec 31, 2024