Eastman Chemical Company (EMN)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,377,000 | 9,337,000 | 10,923,000 | 10,887,000 | 10,991,000 | 11,159,000 | 9,818,000 | 10,278,000 | 10,580,000 | 10,901,000 | 10,912,000 | 10,781,000 | 10,476,000 | 9,968,000 | 9,370,000 | 8,641,000 | 8,473,000 | 8,492,000 | 8,695,000 | 9,134,000 |
| Total current assets | US$ in thousands | 4,101,000 | 3,937,000 | 3,842,000 | 3,638,000 | 3,481,000 | 3,567,000 | 3,671,000 | 3,973,000 | 3,778,000 | 4,105,000 | 4,003,000 | 4,929,000 | 4,646,000 | 4,875,000 | 4,738,000 | 3,797,000 | 3,541,000 | 3,534,000 | 3,526,000 | 3,851,000 |
| Total current liabilities | US$ in thousands | 2,708,000 | 2,590,000 | 2,741,000 | 2,618,000 | 2,576,000 | 2,615,000 | 2,787,000 | 2,971,000 | 3,251,000 | 3,207,000 | 3,148,000 | 3,136,000 | 2,971,000 | 3,113,000 | 2,295,000 | 2,016,000 | 2,038,000 | 1,789,000 | 1,878,000 | 2,315,000 |
| Working capital turnover | 6.73 | 6.93 | 9.92 | 10.67 | 12.14 | 11.72 | 11.11 | 10.26 | 20.08 | 12.14 | 12.76 | 6.01 | 6.25 | 5.66 | 3.84 | 4.85 | 5.64 | 4.87 | 5.28 | 5.95 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,377,000K ÷ ($4,101,000K – $2,708,000K)
= 6.73
Eastman Chemical Company's working capital turnover ratio has shown fluctuations over the reported periods, ranging from a low of 3.84 to a high of 20.08. The working capital turnover measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in using its working capital to support sales.
From March 31, 2020, to March 31, 2021, the company's working capital turnover decreased from 5.95 to 4.85 before showing an increase in the subsequent quarters. Notably, the ratio spiked in December 31, 2022, and March 31, 2023, reaching 20.08 and 10.26, respectively, indicating exceptional efficiency in working capital utilization during those periods.
However, there were slight declines in the working capital turnover ratio in the latter half of 2024, dropping to 6.73 by December 31, 2024, which could indicate a potential decrease in efficiency in utilizing working capital to generate revenue. Overall, a continuous monitoring of the trend and analysis of the working capital turnover ratio is crucial to assess the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024