FTI Consulting Inc (FCN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,489,240 | 3,028,910 | 2,776,220 | 2,461,280 | 2,352,720 |
| Total current assets | US$ in thousands | 1,555,450 | 1,510,600 | 1,370,030 | 1,129,710 | 1,178,660 |
| Total current liabilities | US$ in thousands | 892,769 | 769,491 | 718,116 | 670,171 | 612,537 |
| Working capital turnover | 5.27 | 4.09 | 4.26 | 5.36 | 4.16 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,489,240K ÷ ($1,555,450K – $892,769K)
= 5.27
The working capital turnover of FTI Consulting Inc. has fluctuated over the past five years. It increased from 4.16 in 2019 to 5.36 in 2020, indicating that the company effectively generated revenue from its working capital in 2020. However, in the following years, the working capital turnover decreased to 4.26 in 2021 and further to 4.09 in 2022 before increasing again to 5.27 in 2023.
The working capital turnover ratio measures a company's efficiency in generating revenue from its working capital. A higher ratio indicates that the company is efficiently using its working capital to generate sales. Conversely, a lower ratio may suggest inefficiency or a decrease in sales relative to the working capital employed.
In the case of FTI Consulting Inc., the fluctuating trend in the working capital turnover ratio implies varying levels of efficiency in utilizing its working capital to generate revenue over the years. Further analysis of the company's working capital management practices and sales generation strategies may provide insights into the reasons behind these fluctuations and help in optimizing the company's operational efficiency.
Peer comparison
Dec 31, 2023