ESAB Corp (ESAB)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,740,800 | 2,774,770 | 2,593,480 | 2,428,120 | 1,950,070 |
| Total current assets | US$ in thousands | 1,148,380 | 997,720 | 988,670 | 964,073 | 804,948 |
| Total current liabilities | US$ in thousands | 632,051 | 620,082 | 601,575 | 596,589 | 460,841 |
| Working capital turnover | 5.31 | 7.35 | 6.70 | 6.61 | 5.67 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,740,800K ÷ ($1,148,380K – $632,051K)
= 5.31
ESAB Corp's working capital turnover has shown a generally increasing trend over the years provided in the data. The ratios indicate the company's ability to efficiently utilize its working capital to generate sales revenue.
The working capital turnover ratio has improved from 5.67 in December 2020 to 7.35 in December 2023, suggesting ESAB Corp has become more effective in translating its working capital into sales.
However, there was a slight decrease in the ratio in December 2024 to 5.31, indicating a potential decrease in efficiency in utilizing working capital to generate revenue compared to the previous year.
Overall, ESAB Corp has shown a positive trend in its working capital turnover over the years, indicating good management of working capital to support sales growth.
Peer comparison
Dec 31, 2024