Flowserve Corporation (FLS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,277,980 | 3,600,590 | 3,412,060 | 3,653,870 | 3,909,500 |
| Total current assets | US$ in thousands | 2,703,780 | 2,450,970 | 2,388,680 | 2,904,330 | 2,506,750 |
| Total current liabilities | US$ in thousands | 1,438,580 | 1,243,150 | 1,131,800 | 1,141,630 | 1,117,440 |
| Working capital turnover | 3.38 | 2.98 | 2.71 | 2.07 | 2.81 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,277,980K ÷ ($2,703,780K – $1,438,580K)
= 3.38
Flowserve Corp.'s working capital turnover has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales revenue. The ratio increased from 2.83 in 2019 to 3.41 in 2023. This suggests that Flowserve Corp. has been able to effectively manage its operating cycle, efficiently converting its current assets and liabilities into sales. A higher working capital turnover ratio generally signifies strong liquidity management and effective working capital utilization. This trend may imply improved operational efficiency and effectiveness in managing the company's working capital resources over the years.
Peer comparison
Dec 31, 2023