Eastman Chemical Company (EMN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,382,000 | 9,210,000 | 10,580,000 | 10,476,000 | 8,473,000 |
| Total current assets | US$ in thousands | 4,101,000 | 3,481,000 | 3,778,000 | 4,646,000 | 3,541,000 |
| Total current liabilities | US$ in thousands | 2,708,000 | 2,576,000 | 3,251,000 | 2,971,000 | 2,038,000 |
| Working capital turnover | 6.74 | 10.18 | 20.08 | 6.25 | 5.64 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,382,000K ÷ ($4,101,000K – $2,708,000K)
= 6.74
The working capital turnover ratio of Eastman Chemical Company has exhibited fluctuations over the past five years. The ratio increased from 5.64 in 2020 to 6.25 in 2021, indicating a slight improvement in the efficiency of converting working capital into sales. However, there was a significant surge in the ratio to 20.08 in 2022, suggesting a substantial increase in the efficiency of utilizing working capital during that year.
Subsequently, the ratio decreased to 10.18 in 2023, indicating a decline in the efficiency of working capital turnover compared to the previous year. In 2024, the ratio stands at 6.74, which is slightly lower than in 2023 but still higher than the levels seen in earlier years. Overall, Eastman Chemical Company has demonstrated varying levels of efficiency in utilizing its working capital to generate sales over the period under consideration.
Peer comparison
Dec 31, 2024