FMC Corporation (FMC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,246,100 | 4,486,800 | 5,802,300 | 5,045,200 | 4,642,100 |
| Total current assets | US$ in thousands | 4,958,300 | 5,129,100 | 5,438,600 | 4,937,600 | 4,375,600 |
| Total current liabilities | US$ in thousands | 3,019,200 | 3,384,600 | 3,799,600 | 3,520,300 | 2,829,000 |
| Working capital turnover | 2.19 | 2.57 | 3.54 | 3.56 | 3.00 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,246,100K ÷ ($4,958,300K – $3,019,200K)
= 2.19
The working capital turnover for FMC Corporation has shown some variability over the past five years. The ratio was 3.00 in December 31, 2020, indicating that the company was able to turn over its working capital 3 times during that period.
Subsequently, the working capital turnover improved to 3.56 by December 31, 2021, and remained relatively stable at 3.54 by December 31, 2022. This suggests that FMC Corporation effectively managed its working capital to generate sales revenue.
However, there was a notable decrease in the working capital turnover to 2.57 by December 31, 2023, implying that the company may have faced challenges in efficiently utilizing its working capital to support its operations and generate sales.
The downward trend continued as the working capital turnover further declined to 2.19 by December 31, 2024, indicating a potential inefficiency in the management of the company's working capital in that year.
Overall, FMC Corporation's working capital turnover has fluctuated over the years, reflecting varying levels of efficiency in utilizing its working capital to support business operations and generate sales revenue. Monitoring this ratio is crucial for assessing the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2024