DXP Enterprises Inc (DXPE)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,624,650 | 1,451,700 | 1,093,110 | 982,407 | 1,247,510 |
| Total current assets | US$ in thousands | 648,554 | 516,114 | 404,574 | 409,425 | 409,349 |
| Total current liabilities | US$ in thousands | 224,165 | 212,901 | 181,062 | 147,139 | 139,325 |
| Working capital turnover | 3.83 | 4.79 | 4.89 | 3.75 | 4.62 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,624,650K ÷ ($648,554K – $224,165K)
= 3.83
Over the past five years, DXP Enterprises Inc's working capital turnover has fluctuated. In 2021, the company achieved its highest working capital turnover of 4.89, indicating that it generated $4.89 in net sales revenue for every $1 of working capital invested. This signifies an efficient utilization of its working capital to generate sales.
In 2022 and 2019, DXP Enterprises Inc also displayed strong working capital turnover ratios of 4.79 and 4.62, respectively, reflecting consistent effectiveness in converting working capital into sales revenue over those years.
However, in 2020, the working capital turnover ratio decreased to 3.75, suggesting a potential decrease in the efficiency of using working capital to drive sales. This decline may warrant further investigation into the company's working capital management practices during that period.
Overall, DXP Enterprises Inc has demonstrated varying levels of efficiency in utilizing its working capital to generate sales revenue over the past five years, with 2021 standing out as a particularly strong year in terms of working capital turnover.
Peer comparison
Dec 31, 2023