FMC Corporation (FMC)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,475,000 | 4,961,900 | 5,367,100 | 5,804,900 | 5,818,300 | 5,592,300 | 5,402,800 | 5,191,300 | 5,034,800 | 4,780,000 | 4,671,900 | 4,586,400 | 4,642,100 | 4,687,200 | 4,616,900 | 4,667,700 | 4,609,800 | 4,954,400 | 4,863,700 | 4,812,000 |
| Total current assets | US$ in thousands | 5,129,100 | 5,322,300 | 6,266,800 | 6,021,800 | 5,438,600 | 5,110,600 | 5,517,400 | 5,298,400 | 5,053,800 | 4,728,200 | 5,197,300 | 4,667,100 | 4,375,600 | 4,015,200 | 4,288,200 | 4,472,000 | 4,074,800 | 4,077,600 | 4,097,000 | 4,204,100 |
| Total current liabilities | US$ in thousands | 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 | 2,723,900 | 2,521,500 | 3,230,100 | 3,337,600 |
| Working capital turnover | 2.57 | 2.65 | 2.80 | 4.29 | 3.55 | 3.78 | 3.53 | 3.53 | 3.28 | 3.68 | 3.45 | 3.56 | 3.00 | 2.85 | 2.88 | 2.32 | 3.41 | 3.18 | 5.61 | 5.55 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,475,000K ÷ ($5,129,100K – $3,384,600K)
= 2.57
The working capital turnover ratio for FMC Corp. fluctuated over the past eight quarters, ranging from a low of 2.57 in Q4 2023 to a high of 4.28 in Q1 2023. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
A higher ratio suggests that FMC is effectively using its working capital to generate sales, while a lower ratio may indicate inefficiencies in managing working capital. The downward trend from Q1 2023 to Q4 2023 may suggest a potential decline in operational efficiency or a change in working capital management strategies.
It is important for FMC to closely monitor its working capital turnover ratio and identify the factors contributing to fluctuations. By analyzing this ratio over time, the company can gain insights into its operational efficiency and make informed decisions to optimize working capital utilization.
Peer comparison
Dec 31, 2023