Comfort Systems USA Inc (FIX)
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 | 5,206,760 | 4,966,380 | 4,708,270 | 4,429,790 | 4,140,366 | 3,879,260 | 3,593,146 | 3,289,091 | 3,073,636 | 2,916,513 | 2,796,716 | 2,826,289 | 2,856,659 | 2,877,282 | 2,870,101 | 2,776,935 | 2,615,277 | 2,484,052 | 2,371,670 | 2,256,411 |
| Total current assets | US$ in thousands | 1,911,100 | 1,812,230 | 1,500,320 | 1,459,020 | 1,307,670 | 1,358,090 | 1,238,220 | 1,139,630 | 1,027,320 | 904,711 | 819,400 | 762,572 | 811,852 | 811,296 | 792,505 | 878,443 | 790,184 | 750,402 | 726,582 | 557,272 |
| Total current liabilities | US$ in thousands | 1,721,200 | 1,628,990 | 1,481,480 | 1,406,660 | 1,170,800 | 1,044,000 | 968,180 | 857,199 | 836,554 | 742,262 | 721,410 | 691,688 | 692,904 | 655,343 | 681,486 | 599,625 | 607,997 | 577,732 | 527,050 | 409,843 |
| Working capital turnover | 27.42 | 27.10 | 249.91 | 84.60 | 30.25 | 12.35 | 13.31 | 11.65 | 16.11 | 17.95 | 28.54 | 39.87 | 24.02 | 18.45 | 25.85 | 9.96 | 14.35 | 14.39 | 11.89 | 15.31 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,206,760K ÷ ($1,911,100K – $1,721,200K)
= 27.42
Comfort Systems USA, Inc. has seen fluctuations in its working capital turnover ratio over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.
In Q2 2023, the working capital turnover ratio spiked significantly to 249.91, which indicates a substantial improvement in the company's ability to generate revenue using its working capital. This spike may be attributed to various factors such as better management of inventory, receivables, and payables during that quarter.
In the subsequent quarters, Q3 2023 and Q4 2023, the working capital turnover ratio remained relatively high at 27.10 and 27.42, respectively. This indicates continued efficiency in utilizing working capital to generate sales revenue during those periods.
However, in Q1 2023, the working capital turnover ratio dropped to 84.60, which was still above previous quarters but lower compared to the peak in Q2 2023. This dip suggests a potential decrease in efficiency in managing working capital to generate revenue during the first quarter of 2023.
Comparing the ratios from the same quarter in the previous year, Comfort Systems USA, Inc. has generally shown improvement in its working capital turnover, with Q4 2023 significantly outperforming Q4 2022. This improvement indicates the company's efforts to enhance operational efficiency and financial performance over time.
Overall, the analysis of Comfort Systems USA, Inc.'s working capital turnover ratio reveals varying levels of efficiency in utilizing working capital to generate revenue during different quarters, with a notable improvement seen in Q2 2023.
Peer comparison
Dec 31, 2023