FMC Corporation (FMC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,174,400 | 5,573,700 | 5,034,800 | 4,636,800 | 4,609,800 |
| Total current assets | US$ in thousands | 5,129,100 | 5,438,600 | 5,053,800 | 4,375,600 | 4,074,800 |
| Total current liabilities | US$ in thousands | 3,384,600 | 3,799,600 | 3,520,300 | 2,829,000 | 2,723,900 |
| Working capital turnover | 2.39 | 3.40 | 3.28 | 3.00 | 3.41 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,174,400K ÷ ($5,129,100K – $3,384,600K)
= 2.39
FMC Corp.'s working capital turnover has shown fluctuations over the past five years. In 2023, the working capital turnover ratio decreased to 2.57, following a trend of decreasing ratios since 2021. This indicates that the company is generating less revenue relative to its working capital.
The highest working capital turnover ratio was observed in 2021 at 3.56, suggesting that the company efficiently utilized its working capital to generate sales. However, there was a decline in 2022 and further in 2023.
The trend in the working capital turnover ratio may indicate changes in the company's operating efficiency, liquidity, or sales growth. A decreasing ratio may imply that the company is experiencing challenges in managing its working capital effectively or that sales growth has not kept up with working capital levels. Further analysis of the company's financial performance and operating activities would be required to understand the reasons behind these fluctuations in the working capital turnover ratio.
Peer comparison
Dec 31, 2023