Element Solutions Inc (ESI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,456,900 | 2,333,200 | 2,549,400 | 2,399,800 | 1,853,700 |
| Total current assets | US$ in thousands | 1,270,000 | 1,197,500 | 1,188,700 | 1,214,500 | 989,900 |
| Total current liabilities | US$ in thousands | 379,700 | 369,400 | 344,400 | 415,200 | 314,300 |
| Working capital turnover | 2.76 | 2.82 | 3.02 | 3.00 | 2.74 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,456,900K ÷ ($1,270,000K – $379,700K)
= 2.76
The working capital turnover ratio for Element Solutions Inc. exhibits a generally stable pattern over the examined period from December 31, 2020, to December 31, 2024. In 2020, the ratio stood at 2.74, indicating that the company generated approximately $2.74 in sales for every dollar of working capital employed. The ratio increased modestly in 2021 to 3.00, suggesting an improvement in the efficiency of working capital utilization. This upward trend continued slightly into 2022, reaching 3.02, reflecting slight enhancements in operational efficiency or sales relative to working capital.
However, in 2023, a decline to 2.82 was observed, indicating a decrease in the sales generated per dollar of working capital and suggesting a potential reduction in operational efficiency or a change in working capital management. The ratio experienced a marginal recovery in 2024, rising again to 2.76, yet it did not surpass the earlier peak observed in 2022.
Overall, the fluctuations in the working capital turnover ratio imply a relatively steady but somewhat inconsistent efficiency level in managing working capital relative to sales over the analyzed period. The ratio's values suggest that the company maintains a moderate level of efficiency, with minor improvements and setbacks that may correlate with operational, financial, or strategic adjustments made during these years.
Peer comparison
Dec 31, 2024