ESAB Corp (ESAB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,774,766 | 2,749,545 | 2,688,814 | 2,629,569 | 2,593,480 | |||
| Total current assets | US$ in thousands | 997,720 | 1,029,740 | 1,071,610 | 1,060,700 | 988,670 | 987,996 | 1,041,360 | 1,048,090 |
| Total current liabilities | US$ in thousands | 620,082 | 610,357 | 618,372 | 630,422 | 601,575 | 610,582 | 642,082 | 652,410 |
| Working capital turnover | 7.35 | 6.56 | 5.93 | 6.11 | 6.70 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,774,766K ÷ ($997,720K – $620,082K)
= 7.35
ESAB Corp's working capital turnover ratio has shown fluctuations over the past five quarters, ranging from 5.93 to 7.35. A higher working capital turnover ratio indicates better efficiency in utilizing working capital to generate sales revenue. The increase in Q4 2023 compared to the previous quarter suggests that ESAB Corp was able to generate $7.35 in sales for every dollar of working capital invested. This implies that ESAB Corp has been managing its working capital effectively to support its sales activities. Despite some fluctuations, the overall trend indicates that ESAB Corp has been relatively consistent in efficiently utilizing its working capital to drive revenue generation.
Peer comparison
Dec 31, 2023