National Vision Holdings Inc (EYE)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,127,880 | 2,006,690 | 2,080,160 | 1,662,480 | 1,678,310 |
| Total current assets | US$ in thousands | 396,670 | 473,836 | 514,576 | 566,650 | 234,639 |
| Total current liabilities | US$ in thousands | 397,700 | 344,264 | 343,803 | 328,680 | 273,179 |
| Working capital turnover | — | 15.49 | 12.18 | 6.99 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,127,880K ÷ ($396,670K – $397,700K)
= —
The working capital turnover of National Vision Holdings Inc has shown a positive trend over the past five years, indicating an improvement in the efficiency of its working capital management. The ratio increased steadily from 6.99 in 2020 to 15.49 in 2022, demonstrating a substantial enhancement in the company's ability to generate sales from its working capital.
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is able to efficiently use its current assets to support its sales activities. In the case of National Vision Holdings Inc, the upward trend in the working capital turnover ratio suggests that the company has been successful in optimizing its working capital resources to drive sales growth.
However, the lack of data for 2021 and 2019 makes it difficult to assess the consistency of this trend. To gain a more thorough understanding of the company's working capital management efficiency, it would be beneficial to have data for those years as well. Nonetheless, the increasing trend in the working capital turnover ratio from 2020 to 2022 is a positive sign of improved operational efficiency for National Vision Holdings Inc.
Peer comparison
Dec 31, 2023