Floor & Decor Holdings Inc (FND)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,406,710 | 4,256,060 | 3,431,300 | 2,421,130 | 2,039,070 |
| Total current assets | US$ in thousands | 1,316,640 | 1,457,480 | 1,273,340 | 1,040,460 | 701,486 |
| Total current liabilities | US$ in thousands | 1,152,010 | 1,006,760 | 1,032,020 | 698,836 | 552,541 |
| Working capital turnover | 26.77 | 9.44 | 14.22 | 7.09 | 13.69 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,406,710K ÷ ($1,316,640K – $1,152,010K)
= 26.77
The working capital turnover of Floor & Decor Holdings Inc has shown fluctuations over the past five years. In 2023, the working capital turnover ratio increased significantly to 26.77, indicating that the company generated $26.77 of revenue for every dollar of working capital invested. This substantial increase suggests that the company has effectively managed its working capital to support sales growth efficiently.
Compared to 2022, where the working capital turnover was 9.44, the significant improvement in 2023 reflects a more efficient utilization of working capital in generating revenue. This indicates that the company has become more adept at managing its current assets and liabilities to support operations effectively.
In 2021, the working capital turnover ratio was 14.22, higher than in 2020 (7.09) but slightly lower than in 2019 (13.69). This suggests that although the company improved its working capital efficiency in 2021 compared to the prior year, there was still room for further enhancement compared to 2019.
Overall, the increasing trend in working capital turnover from 2019 to 2023 indicates that Floor & Decor Holdings Inc has been successful in optimizing its working capital management practices to drive sales growth and operational efficiency. This improvement is a positive sign of the company's ability to effectively utilize its current assets and liabilities to support its core business activities.
Peer comparison
Dec 31, 2023