Fortune Brands Innovations Inc. (FBIN)
Working capital turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,626,200 | 4,596,800 | 4,531,100 | 4,622,800 | 4,723,000 | 4,809,100 | 4,883,500 | 4,858,200 | 4,801,100 | 5,242,800 | 5,625,000 | 5,770,700 | 6,090,300 | 5,901,100 | 5,708,000 | 5,839,400 | 5,764,600 | 5,714,800 | 5,636,600 | 5,558,400 |
| Total current assets | US$ in thousands | 2,045,700 | 2,149,700 | 2,443,600 | 2,301,200 | 2,460,400 | 3,007,600 | 3,063,800 | 2,956,700 | 2,744,500 | 2,726,000 | 2,548,900 | 2,345,900 | 2,208,500 | 2,138,000 | 1,957,300 | 1,914,000 | 1,898,200 | 1,906,700 | 1,916,900 | 1,848,000 |
| Total current liabilities | US$ in thousands | 1,200,400 | 1,192,100 | 1,640,700 | 1,413,200 | 1,544,700 | 2,047,900 | 1,441,500 | 1,354,800 | 1,971,100 | 1,528,800 | 1,364,700 | 1,197,000 | 1,345,100 | 1,135,000 | 952,800 | 1,246,100 | 1,409,300 | 1,376,600 | 1,695,200 | 1,238,800 |
| Working capital turnover | 5.47 | 4.80 | 5.64 | 5.21 | 5.16 | 5.01 | 3.01 | 3.03 | 6.21 | 4.38 | 4.75 | 5.02 | 7.05 | 5.88 | 5.68 | 8.74 | 11.79 | 10.78 | 25.42 | 9.12 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,626,200K ÷ ($2,045,700K – $1,200,400K)
= 5.47
The working capital turnover ratio of Fortune Brands Innovations Inc. provides insights into how efficiently the company is managing its working capital to generate sales. A higher ratio typically indicates better efficiency in utilizing its current assets and liabilities.
In the provided data, we observe fluctuations in the working capital turnover ratio over the past few years. It ranged from a low of 3.01 in June 2022 to a high of 25.42 in March 2019. This indicates significant variability in how effectively the company is converting its working capital into sales over time.
The ratios seem to have generally improved in recent periods. For example, the ratio increased from 4.75 in June 2021 to 5.47 in December 2023. This uptrend suggests that the company has been able to enhance its working capital efficiency, possibly through better management of its current assets and liabilities.
However, the company experienced a notable dip in efficiency in March 2020 with a working capital turnover ratio of 8.74. This could be due to temporary disruptions or specific events affecting the company's operations during that period.
Overall, it is essential for Fortune Brands Innovations Inc. to maintain a balance in its working capital management to ensure smooth operations and optimize its financial performance. Monitoring and analyzing the working capital turnover ratio can provide valuable insights for the company's management to make informed decisions regarding its working capital management strategies.
Peer comparison
Dec 31, 2023