DXP Enterprises Inc (DXPE)
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 | 1,802,040 | 1,738,170 | 1,684,484 | 1,666,968 | 1,678,600 | 1,677,851 | 1,645,916 | 1,585,688 | 1,480,832 | 1,367,686 | 1,269,866 | 1,187,570 | 1,113,775 | 1,053,315 | 984,014 | 949,899 | 1,005,266 | 1,068,045 | 1,175,030 | 1,256,947 |
| Total current assets | US$ in thousands | 661,874 | 558,944 | 544,095 | 616,832 | 648,554 | 516,787 | 508,967 | 539,340 | 516,114 | 474,301 | 453,285 | 412,565 | 404,574 | 410,391 | 404,280 | 426,584 | 406,583 | 402,694 | 402,229 | 403,308 |
| Total current liabilities | US$ in thousands | 243,984 | 249,363 | 227,703 | 229,402 | 224,165 | 221,858 | 207,965 | 224,755 | 212,901 | 245,861 | 237,527 | 177,980 | 181,062 | 188,621 | 197,835 | 153,356 | 144,139 | 155,872 | 149,219 | 144,552 |
| Working capital turnover | 4.31 | 5.61 | 5.32 | 4.30 | 3.96 | 5.69 | 5.47 | 5.04 | 4.88 | 5.99 | 5.89 | 5.06 | 4.98 | 4.75 | 4.77 | 3.48 | 3.83 | 4.33 | 4.64 | 4.86 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,802,040K ÷ ($661,874K – $243,984K)
= 4.31
The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio typically suggests better efficiency in utilizing working capital.
Analyzing the working capital turnover of DXP Enterprises Inc over the provided period shows fluctuations in the efficiency of working capital management. The trend indicates some variation, with the ratio ranging from a low of 3.48 in March 31, 2021, to a high of 5.99 in September 30, 2022.
In the recent quarters, the working capital turnover has shown improvement, reaching 5.32 in June 30, 2024, and 5.61 in September 30, 2024. These higher ratios suggest that the company is effectively using its working capital to generate sales.
However, the ratio experienced a decrease in efficiency, dropping to 3.96 in December 31, 2023. This decline may indicate potential challenges in managing working capital to support sales activities during that period.
Overall, the working capital turnover ratio varies over time for DXP Enterprises Inc, reflecting fluctuations in the efficiency of using working capital. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to effectively deploy its working capital resources to drive sales growth.
Peer comparison
Dec 31, 2024