Everus Construction Group Inc (ECG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 2,854,390 | 2,699,250 | 2,051,640 |
| Total current assets | US$ in thousands | 766,063 | 788,131 | — |
| Total current liabilities | US$ in thousands | 452,183 | 473,701 | — |
| Working capital turnover | 9.09 | 8.58 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,854,390K ÷ ($766,063K – $452,183K)
= 9.09
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. In the case of Everus Construction Group Inc, the working capital turnover has shown a positive trend over the past two years, increasing from 8.58 in 2022 to 9.09 in 2023. This indicates that the company is improving its ability to efficiently utilize its working capital to support sales growth.
A higher working capital turnover ratio generally suggests that the company is managing its working capital effectively and is able to generate more sales revenue with less investment in working capital. Everus Construction Group Inc's increasing trend in working capital turnover is a positive indicator of its operational efficiency and financial health. However, it is important to note that the data for 2021 is not available, which limits the ability to provide a complete trend analysis.
Overall, a higher working capital turnover ratio is typically viewed favorably by investors and creditors as it indicates that the company is efficiently managing its working capital to drive revenue growth.
Peer comparison
Dec 31, 2023