Enovis Corp (ENOV)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,699,490 | 1,524,550 | 3,751,870 | 2,959,420 | 3,222,130 |
| Total current assets | US$ in thousands | 896,519 | 795,023 | 2,303,280 | 1,361,830 | 1,404,240 |
| Total current liabilities | US$ in thousands | 369,607 | 565,199 | 1,023,580 | 811,658 | 857,314 |
| Working capital turnover | 3.23 | 6.63 | 2.93 | 5.38 | 5.89 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,699,490K ÷ ($896,519K – $369,607K)
= 3.23
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its resources to support operations and sales growth.
Enovis Corp's working capital turnover has fluctuated over the past five years, ranging from 3.01 to 6.80. In 2023, the working capital turnover decreased to 3.24 compared to the previous year, indicating a potential decrease in the efficiency of working capital utilization.
The significant drop in the ratio from 2022 to 2023 could be a cause for concern as it suggests that Enovis Corp may not be converting its working capital into sales as effectively as before. Further analysis is needed to determine the reasons behind this decline and to identify opportunities for improving working capital management and operational efficiency in the future.
Peer comparison
Dec 31, 2023