Everus Construction Group Inc (ECG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,849,680 | 2,854,390 | 2,699,250 | 2,051,640 |
| Total current assets | US$ in thousands | 917,229 | 766,063 | 788,131 | — |
| Total current liabilities | US$ in thousands | 513,370 | 452,183 | 473,701 | — |
| Working capital turnover | 7.06 | 9.09 | 8.58 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,849,680K ÷ ($917,229K – $513,370K)
= 7.06
Everus Construction Group Inc's working capital turnover has shown fluctuating trends over the years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In 2022, the company achieved a working capital turnover ratio of 8.58, indicating that it generated $8.58 in revenue for every dollar of working capital. This demonstrates effective management of working capital to generate sales.
The following year, in 2023, Everus Construction Group Inc improved its working capital turnover ratio to 9.09. This signifies that the company enhanced its efficiency in utilizing working capital to generate sales revenue further.
However, by 2024, the working capital turnover ratio decreased to 7.06, suggesting a decrease in the efficiency of converting working capital into sales revenue. This could be a concern as a lower ratio may indicate inefficiencies in managing working capital.
In conclusion, Everus Construction Group Inc needs to monitor its working capital turnover ratio closely to ensure optimal management of working capital and maximize its sales generation efficiency over the coming years.
Peer comparison
Dec 31, 2024