Element Solutions Inc (ESI)
Working capital turnover
| Mar 31, 2025 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,475,600 | 2,456,900 | 2,406,100 | 2,360,400 | 2,333,800 | 2,333,200 | 2,333,600 | 2,352,800 | 2,443,600 | 2,549,400 | 2,622,500 | 2,620,200 | 2,529,900 | 2,399,800 | 2,289,500 | 2,150,800 | 1,951,200 | 1,853,700 | 1,771,800 | 1,759,000 |
| Total current assets | US$ in thousands | 1,360,500 | 1,270,000 | 1,351,200 | 1,302,000 | 1,235,800 | 1,197,500 | 1,299,500 | 1,256,500 | 1,234,200 | 1,188,700 | 1,178,600 | 1,237,800 | 1,216,900 | 1,214,500 | 1,213,100 | 1,145,000 | 1,070,100 | 989,900 | 946,600 | 839,400 |
| Total current liabilities | US$ in thousands | 344,600 | 379,700 | 384,000 | 372,200 | 340,900 | 369,400 | 376,700 | 378,100 | 342,600 | 344,400 | 354,000 | 395,000 | 399,700 | 415,200 | 421,300 | 355,500 | 320,000 | 314,300 | 302,400 | 245,700 |
| Working capital turnover | 2.44 | 2.76 | 2.49 | 2.54 | 2.61 | 2.82 | 2.53 | 2.68 | 2.74 | 3.02 | 3.18 | 3.11 | 3.10 | 3.00 | 2.89 | 2.72 | 2.60 | 2.74 | 2.75 | 2.96 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,475,600K ÷ ($1,360,500K – $344,600K)
= 2.44
The working capital turnover ratio for Element Solutions Inc exhibits variability over the analyzed period from June 30, 2020, through March 31, 2025. Initially, the ratio was 2.96, declining slightly to 2.75 by September 30, 2020, and remaining relatively stable through December 31, 2020, at 2.74. A further reduction is observed by March 31, 2021, with the ratio decreasing to 2.60.
From mid-2021 onward, the ratio showed a gradual upward trend, reaching 2.89 at September 30, 2021, and stabilizing around 3.00 at December 31, 2021. This upward momentum continues into 2022, with the ratio peaking at 3.11 by June 30, 2022, and remaining relatively high through September 2022 at 3.18, before a modest decline to 3.02 by December 2022.
The ratio experiences a subsequent decrease during 2023 and 2024, falling from 2.74 at March 31, 2023, to a low of 2.44 on March 31, 2025. Notably, the ratio fluctuates within this period, with occasional short-term increases—for example, to 2.76 on December 31, 2024—before declining again.
Overall, the working capital turnover ratio demonstrates a pattern of fluctuation, with periods of improvement in late 2021 and early 2022, followed by a decline through 2023 and into early 2025. The overall trend suggests that the efficiency of managing working capital relative to sales has decreased over the analyzed timeframe, indicating potential adjustments in working capital management strategies or changes in operational efficiency over this period.
Peer comparison
Mar 31, 2025