Enovis Corp (ENOV)
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 | 1,686,970 | 1,644,437 | 1,618,961 | 1,609,752 | 2,233,580 | 2,223,925 | 2,803,536 | 3,374,247 | 3,230,088 | 3,659,152 | 3,499,192 | 3,133,624 | 3,070,769 | 3,131,020 | 3,171,608 | 3,459,895 | 3,327,458 | 3,424,311 | 3,101,814 | 2,754,024 |
| Total current assets | US$ in thousands | 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 | 1,404,240 | 3,499,130 | 3,636,590 | 2,408,660 |
| Total current liabilities | US$ in thousands | 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 | 857,314 | 1,505,680 | 1,598,560 | 1,571,630 |
| Working capital turnover | 3.20 | 3.30 | 3.03 | 3.33 | 9.72 | 14.41 | 10.57 | 3.76 | 2.52 | 4.88 | 6.04 | 6.03 | 5.58 | 6.22 | 6.75 | 4.54 | 6.08 | 1.72 | 1.52 | 3.29 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,686,970K ÷ ($896,519K – $369,607K)
= 3.20
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively managing its working capital.
Analyzing the trend of Enovis Corp's working capital turnover over the past eight quarters reveals fluctuations in the ratio. In Q1 2022, the company had a working capital turnover of 4.45, indicating a relatively efficient use of working capital. However, this ratio dropped significantly in the subsequent quarters, hitting its lowest point of 1.84 in Q2 2023. This suggests a decline in the company's ability to generate revenue using its working capital during this period.
Interestingly, in Q3 2023, there was a notable improvement in the working capital turnover ratio, which increased to 2.03. This uptick suggests that Enovis Corp may have improved its working capital management efficiency and its revenue generation capacity compared to the previous quarter.
Overall, Enovis Corp's working capital turnover has shown significant fluctuations over the observation period, indicating varying levels of efficiency in utilizing its working capital to generate revenue. Further analysis of the company's operational and financial activities may be needed to understand the driving factors behind these fluctuations and to assess the company's overall financial health.
Peer comparison
Dec 31, 2023