Eastman Chemical Company (EMN)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,210,000 | 9,376,000 | 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 | 9,273,000 | 9,444,000 | 9,666,000 | 9,924,000 |
| Total current assets | US$ in thousands | 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 | 3,321,000 | 3,440,000 | 3,516,000 | 3,551,000 |
| Total current liabilities | US$ in thousands | 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 | 1,789,000 | 2,080,000 | 2,226,000 | 2,352,000 |
| Working capital turnover | 10.18 | 9.85 | 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 | 6.05 | 6.94 | 7.49 | 8.28 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,210,000K ÷ ($3,481,000K – $2,576,000K)
= 10.18
To analyze Eastman Chemical Co's working capital turnover, we calculate the ratio by dividing net sales by average working capital for each quarter.
The trend in Eastman Chemical Co's working capital turnover indicates fluctuations over the past eight quarters. The ratio ranged from a low of 6.01 in Q1 2022 to a high of 20.08 in Q4 2022, showing significant variability in managing working capital efficiency during this period.
A high working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales. In contrast, a low ratio suggests inefficient utilization of working capital, potentially leading to liquidity issues or missed sales opportunities.
The recent values show an upward trend in working capital turnover, with values ranging from 9.85 in Q3 2023 to 11.11 in Q2 2023. This improvement suggests that the company is effectively managing its working capital to support its sales activities.
Overall, while there have been fluctuations in Eastman Chemical Co's working capital turnover in the past quarters, the recent trend indicates improved efficiency in utilizing working capital to generate sales. Monitoring this ratio can provide insights into the company's operational efficiency and liquidity management.
Peer comparison
Dec 31, 2023