Eastman Chemical Company (EMN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,210,000 | 10,580,000 | 10,476,000 | 8,473,000 | 9,273,000 |
| Total current assets | US$ in thousands | 3,481,000 | 3,778,000 | 4,646,000 | 3,541,000 | 3,321,000 |
| Total current liabilities | US$ in thousands | 2,576,000 | 3,251,000 | 2,971,000 | 2,038,000 | 1,789,000 |
| Working capital turnover | 10.18 | 20.08 | 6.25 | 5.64 | 6.05 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,210,000K ÷ ($3,481,000K – $2,576,000K)
= 10.18
The working capital turnover ratio for Eastman Chemical Co has shown fluctuations over the past five years. In 2023, the company's working capital turnover decreased to 10.18 from 20.08 in 2022, indicating that the company generated $10.18 in revenue for every dollar of working capital invested. This decline may suggest that the company was less efficient in managing its working capital to generate sales in 2023 compared to the prior year.
Despite the decrease in 2023, the working capital turnover ratio was higher compared to 2020 and 2019, indicating improved efficiency in 2023. It is important to note that a higher working capital turnover ratio typically suggests better efficiency in managing working capital to generate sales.
The trend in the working capital turnover ratio for Eastman Chemical Co shows variability, with fluctuations in performance over the past five years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management effectiveness.
Peer comparison
Dec 31, 2023