FTI Consulting Inc (FCN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,698,650 | 3,489,240 | 3,028,910 | 2,776,220 | 2,461,280 |
| Total current assets | US$ in thousands | 1,819,510 | 1,555,450 | 1,510,600 | 1,370,030 | 1,129,710 |
| Total current liabilities | US$ in thousands | 931,759 | 892,769 | 769,491 | 718,116 | 670,171 |
| Working capital turnover | 4.17 | 5.27 | 4.09 | 4.26 | 5.36 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,698,650K ÷ ($1,819,510K – $931,759K)
= 4.17
FTI Consulting Inc's working capital turnover has fluctuated over the past five years. The ratio was 5.36 in December 31, 2020, indicating that the company generated $5.36 in net revenue for every dollar of working capital invested.
In the subsequent years, the working capital turnover decreased to 4.26 in December 31, 2021, and further to 4.09 in December 31, 2022. This suggests a decrease in efficiency in utilizing its working capital to generate revenue during these periods.
However, the ratio improved in December 31, 2023, reaching 5.27, indicating a more efficient use of working capital. Yet, there was a slight decline to 4.17 in December 31, 2024.
Overall, FTI Consulting Inc's working capital turnover reflects some variability, with periods of both improvement and decline in efficiency in converting working capital into revenue over the past five years. Monitoring this ratio can help assess the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024