ESAB Corp (ESAB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,740,803 | 2,759,395 | 2,767,141 | 2,780,510 | 2,774,766 | 2,749,545 | 2,688,814 | 2,629,569 | 2,593,480 | 2,553,568 | 2,539,271 | 2,507,898 | 2,428,115 |
| Total current assets | US$ in thousands | 1,148,380 | 1,221,510 | 1,212,550 | 1,042,750 | 997,720 | 1,029,740 | 1,071,610 | 1,060,700 | 988,670 | 987,996 | 1,041,360 | 1,048,090 | 964,073 |
| Total current liabilities | US$ in thousands | 632,051 | 637,071 | 651,096 | 631,302 | 620,082 | 610,357 | 618,372 | 630,422 | 601,575 | 610,582 | 642,082 | 652,410 | 596,589 |
| Working capital turnover | 5.31 | 4.72 | 4.93 | 6.76 | 7.35 | 6.56 | 5.93 | 6.11 | 6.70 | 6.77 | 6.36 | 6.34 | 6.61 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,740,803K ÷ ($1,148,380K – $632,051K)
= 5.31
ESAB Corp's working capital turnover has shown fluctuations over the period from December 31, 2021, to December 31, 2024. The turnover ratio started at a relatively high level of 6.61 on December 31, 2021, indicating that ESAB was generating revenue efficiently using its working capital.
There was a slight decrease in the ratio to 6.34 on March 31, 2022, but it remained relatively stable around the range of 6.00 to 7.00 until June 30, 2023. Notably, on December 31, 2023, the working capital turnover spiked to 7.35, suggesting a high level of efficiency in utilizing working capital to generate sales.
However, there was a significant decline in the ratio to 4.72 on September 30, 2024, and further dropped to 4.93 on June 30, 2024, indicating a potential decrease in revenue generation efficiency utilizing working capital during this period.
Overall, ESAB Corp's working capital turnover ratio has shown variability, with periods of efficiency and some fluctuations. It is crucial for the company to monitor and manage its working capital effectively to ensure optimal utilization for revenue generation.
Peer comparison
Dec 31, 2024