Enovis Corp (ENOV)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,107,620 | 1,707,200 | 1,563,100 | 3,854,300 | 3,070,770 |
| Total current assets | US$ in thousands | 1,146,450 | 896,519 | 795,023 | 2,303,280 | 1,361,830 |
| Total current liabilities | US$ in thousands | 528,998 | 369,607 | 565,199 | 1,023,580 | 811,658 |
| Working capital turnover | 3.41 | 3.24 | 6.80 | 3.01 | 5.58 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,107,620K ÷ ($1,146,450K – $528,998K)
= 3.41
Working capital turnover is an important financial ratio that measures how efficiently a company utilizes its working capital to generate sales revenue. In the case of Enovis Corp, the working capital turnover has fluctuated over the past five years as shown below:
- In December 31, 2020, the working capital turnover was 5.58, indicating that Enovis Corp generated $5.58 of revenue for every dollar of working capital invested.
- By December 31, 2021, the working capital turnover decreased to 3.01, suggesting a decline in the efficiency of working capital utilization.
- However, there was a significant improvement in the ratio by December 31, 2022, where the working capital turnover increased to 6.80, indicating a more effective use of working capital to drive sales.
- The efficiency slightly decreased by December 31, 2023, with a working capital turnover of 3.24, implying a reduction in the ability to convert working capital into sales.
- Finally, by December 31, 2024, the working capital turnover improved to 3.41, although still below the peak in 2022.
Overall, Enovis Corp's working capital turnover ratio has shown variability over the years, with fluctuations impacting the efficiency of working capital utilization in generating sales revenue. Further analysis would be needed to understand the factors driving these changes and to assess the effectiveness of the company's working capital management.
Peer comparison
Dec 31, 2024