Fortune Brands Innovations Inc. (FBIN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,626,200 | 4,723,000 | 4,801,100 | 3,621,300 | 5,764,600 |
| Total current assets | US$ in thousands | 2,045,700 | 2,460,400 | 2,744,500 | 2,208,500 | 1,898,200 |
| Total current liabilities | US$ in thousands | 1,200,400 | 1,544,700 | 1,971,100 | 1,345,100 | 1,409,300 |
| Working capital turnover | 5.47 | 5.16 | 6.21 | 4.19 | 11.79 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,626,200K ÷ ($2,045,700K – $1,200,400K)
= 5.47
Fortune Brands Innovations Inc. has demonstrated fluctuations in its working capital turnover ratio over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In 2023, the working capital turnover ratio improved to 5.47 from the previous year's 5.16, suggesting an increase in the efficiency of utilizing working capital to generate sales. This improvement may be attributed to better management of inventories, receivables, and payables.
In 2022, the ratio decreased slightly to 5.16 from 6.21 in 2021. This decline could signify a less efficient utilization of working capital compared to the previous year.
The working capital turnover ratio was at its lowest in 2020 at 4.19 and exhibited a substantial increase in 2019 to 11.79. The 2020 figure indicates a lower efficiency in working capital utilization, while the significant surge in 2019 implies a remarkable efficiency in converting working capital into revenue.
Overall, the working capital turnover of Fortune Brands Innovations Inc. has varied over the years, indicating fluctuations in the efficiency of utilizing working capital to generate sales revenue. Further analysis of the company's operating cycle and working capital management practices could provide additional insights into these fluctuations.
Peer comparison
Dec 31, 2023