FMC Corporation (FMC)
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 | 4,246,100 | 4,167,900 | 4,084,400 | 4,060,500 | 4,486,800 | 4,962,700 | 5,358,000 | 5,795,800 | 5,802,300 | 5,593,900 | 5,410,700 | 5,200,400 | 5,045,200 | 4,783,800 | 4,674,400 | 4,587,700 | 4,642,100 | 4,687,200 | 4,616,900 | 4,667,700 |
| Total current assets | US$ in thousands | 4,958,300 | 5,315,500 | 5,210,200 | 5,198,000 | 5,129,100 | 5,322,300 | 6,266,800 | 6,021,800 | 5,438,600 | 5,110,600 | 5,517,400 | 5,298,400 | 4,937,600 | 4,728,200 | 5,197,300 | 4,667,100 | 4,375,600 | 4,015,200 | 4,288,200 | 4,472,000 |
| Total current liabilities | US$ in thousands | 3,019,200 | 3,588,400 | 3,523,100 | 3,552,900 | 3,384,600 | 3,446,500 | 4,352,700 | 4,668,300 | 3,799,600 | 3,632,200 | 3,985,700 | 3,829,300 | 3,520,300 | 3,427,600 | 3,841,500 | 3,380,100 | 2,829,000 | 2,368,300 | 2,682,900 | 2,456,500 |
| Working capital turnover | 2.19 | 2.41 | 2.42 | 2.47 | 2.57 | 2.65 | 2.80 | 4.28 | 3.54 | 3.78 | 3.53 | 3.54 | 3.56 | 3.68 | 3.45 | 3.56 | 3.00 | 2.85 | 2.88 | 2.32 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,246,100K ÷ ($4,958,300K – $3,019,200K)
= 2.19
The working capital turnover ratio for FMC Corporation has shown fluctuating trends over the periods provided. The ratio increased from 2.32 on March 31, 2020, to a peak of 4.28 on March 31, 2023, indicating that the company was able to efficiently utilize its working capital to generate sales during this period. However, it then declined to 2.19 by December 31, 2024.
Overall, the company has managed to maintain a relatively healthy working capital turnover ratio above 2.0 for most of the periods, suggesting that FMC Corporation has been effective in utilizing its working capital to generate revenue. A higher ratio indicates that the company is efficiently managing its current assets and liabilities to support its sales activities. The decline in the ratio towards the end of the period may indicate potential inefficiencies in working capital management that the company needs to address going forward.
Peer comparison
Dec 31, 2024