DXP Enterprises Inc (DXPE)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,624,653 | 1,630,258 | 1,604,174 | 1,550,194 | 1,451,697 | 1,344,867 | 1,248,616 | 1,166,773 | 1,093,114 | 1,037,874 | 970,085 | 937,202 | 993,218 | 1,056,018 | 1,161,769 | 1,242,731 | 1,252,318 | 1,267,818 | 1,248,873 | 1,225,530 |
| Total current assets | US$ in thousands | 648,554 | 516,787 | 508,967 | 539,340 | 516,114 | 474,301 | 453,285 | 412,565 | 404,574 | 410,391 | 403,685 | 425,674 | 409,425 | 402,694 | 402,229 | 403,308 | 409,349 | 412,318 | 404,628 | 393,496 |
| Total current liabilities | US$ in thousands | 224,165 | 221,858 | 207,965 | 224,755 | 212,901 | 245,861 | 237,692 | 177,980 | 181,062 | 188,621 | 187,424 | 156,281 | 147,139 | 155,872 | 149,219 | 144,552 | 139,325 | 151,978 | 158,321 | 158,632 |
| Working capital turnover | 3.83 | 5.53 | 5.33 | 4.93 | 4.79 | 5.89 | 5.79 | 4.97 | 4.89 | 4.68 | 4.49 | 3.48 | 3.79 | 4.28 | 4.59 | 4.80 | 4.64 | 4.87 | 5.07 | 5.22 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,624,653K ÷ ($648,554K – $224,165K)
= 3.83
DXP Enterprises Inc's working capital turnover has displayed fluctuations over the past few quarters. The ratio peaked at 5.89 in the third quarter of 2022 and hit a low of 3.48 in the first quarter of 2021. Overall, the average working capital turnover ratio for the period seems to be around 4.8.
A high working capital turnover ratio indicates that the company is efficiently managing its working capital to generate sales. On the other hand, a low ratio may suggest inefficiencies or excessive levels of working capital tied up in operations.
It is essential for DXP Enterprises Inc to monitor and manage its working capital turnover effectively to ensure optimal utilization of resources and maintain a healthy balance between liquidity and operational efficiency. Periodic analysis and comparison with industry benchmarks can provide valuable insights for continuous improvement in working capital management.
Peer comparison
Dec 31, 2023