Enovis Corp (ENOV)
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 | 2,107,623 | 2,001,668 | 1,913,970 | 1,817,312 | 1,707,197 | 1,660,890 | 1,627,180 | 1,593,795 | 2,211,014 | 2,825,571 | 3,407,648 | 3,998,459 | 3,854,300 | 3,659,152 | 3,499,192 | 3,133,624 | 3,070,769 | 3,131,020 | 3,171,608 | 3,459,895 |
| Total current assets | US$ in thousands | 1,146,450 | 1,203,060 | 1,172,750 | 1,150,720 | 896,519 | 854,187 | 887,239 | 833,110 | 795,023 | 1,008,210 | 1,078,040 | 2,347,740 | 2,303,280 | 1,725,690 | 1,478,970 | 2,077,960 | 1,361,830 | 1,287,510 | 1,228,400 | 1,581,610 |
| Total current liabilities | US$ in thousands | 528,998 | 530,222 | 518,005 | 549,132 | 369,607 | 355,284 | 353,673 | 349,497 | 565,199 | 853,916 | 812,801 | 1,450,020 | 1,023,580 | 975,471 | 899,419 | 1,558,410 | 811,658 | 784,533 | 758,731 | 819,099 |
| Working capital turnover | 3.41 | 2.97 | 2.92 | 3.02 | 3.24 | 3.33 | 3.05 | 3.30 | 9.62 | 18.31 | 12.85 | 4.45 | 3.01 | 4.88 | 6.04 | 6.03 | 5.58 | 6.22 | 6.75 | 4.54 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,107,623K ÷ ($1,146,450K – $528,998K)
= 3.41
Enovis Corp's working capital turnover has displayed fluctuations over the reported periods. The working capital turnover ratio indicates the efficiency of the company in utilizing its working capital to generate sales revenue. A higher ratio is generally preferred as it suggests that the company is effectively using its working capital to support sales.
From March 31, 2020, to September 30, 2021, Enovis Corp's working capital turnover showed a positive trend, increasing from 4.54 to 6.04. This indicates an improved efficiency in utilizing working capital to generate sales during this period.
However, from December 31, 2021, to June 30, 2024, the working capital turnover ratio decreased gradually, reaching 2.92 by June 30, 2024. This downward trend may raise concerns about the company's ability to efficiently convert working capital into sales revenue.
It's worth noting the significant spike in the working capital turnover ratio to 18.31 on September 30, 2022, and the subsequent decrease to 2.92 by June 30, 2024. Such extreme fluctuations may indicate irregularities or abnormalities in the company's operations during these periods.
Overall, Enovis Corp should closely monitor its working capital turnover ratio to ensure efficient utilization of working capital resources and to sustain healthy operational performance in the future.
Peer comparison
Dec 31, 2024