Comfort Systems USA Inc (FIX)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,027,480 | 6,517,250 | 6,083,000 | 5,569,140 | 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 |
| Total current assets | US$ in thousands | 2,790,240 | 2,536,900 | 2,323,370 | 2,048,190 | 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 |
| Total current liabilities | US$ in thousands | 2,582,770 | 2,429,140 | 2,334,950 | 2,139,660 | 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 |
| Working capital turnover | 33.87 | 60.48 | — | — | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,027,480K ÷ ($2,790,240K – $2,582,770K)
= 33.87
Comfort Systems USA Inc's working capital turnover has shown significant fluctuations over the past few years, ranging from a low of 9.96 in March 2020 to a high of 249.91 in June 2023.
The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is able to generate more revenue with the same amount of working capital, which is generally seen as favorable.
The ratio experienced a substantial increase from March 2023 to June 2023, reaching an exceptionally high value of 249.91, which could suggest a period of efficient working capital management and strong sales performance during that quarter.
However, there were subsequent declines in the ratio in the following quarters, with fluctuations observed through September 2023 to December 2024. It is worth noting that having a very high working capital turnover ratio may also indicate a potential risk of stockouts or an inefficient use of working capital.
The trend in Comfort Systems USA Inc's working capital turnover ratio calls for a closer examination of the company's working capital management strategies and operational efficiency to determine the underlying factors driving these fluctuations. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's financial performance in this aspect.
Peer comparison
Dec 31, 2024