Fluor Corporation (FLR)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,315,000 | 15,474,000 | 13,744,000 | 12,434,900 | 15,668,500 |
| Total current assets | US$ in thousands | 5,175,000 | 5,063,000 | 5,044,000 | 5,562,640 | 5,034,010 |
| Total current liabilities | US$ in thousands | 3,071,000 | 3,163,000 | 3,216,000 | 3,904,060 | 3,572,040 |
| Working capital turnover | 7.75 | 8.14 | 7.52 | 7.50 | 10.72 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $16,315,000K ÷ ($5,175,000K – $3,071,000K)
= 7.75
Fluor Corporation's working capital turnover ratio has shown some fluctuations over the past five years. In 2020, the company's working capital turnover was 10.72, indicating that it generated $10.72 in net sales for every $1 of working capital invested. However, this ratio declined to 7.50 in 2021 and remained relatively stable around 7.50 to 8.14 in the subsequent years.
A high working capital turnover ratio suggests that the company is efficient in managing its working capital to generate sales. In contrast, a lower ratio could indicate inefficiencies in working capital management or a slower turnover of assets.
Fluor Corporation should continue to monitor its working capital turnover ratio to ensure optimal utilization of resources and efficient operations. Further analysis of the company's working capital components and operational strategies may provide insights into improving this ratio over time.
Peer comparison
Dec 31, 2024