Floor & Decor Holdings Inc (FND)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,455,770 | 4,413,880 | 4,264,470 | 3,433,530 | 2,425,790 |
| Total current assets | US$ in thousands | 1,492,380 | 1,316,640 | 1,457,480 | 1,273,340 | 1,040,460 |
| Total current liabilities | US$ in thousands | 1,244,190 | 1,152,010 | 1,006,760 | 1,032,020 | 698,836 |
| Working capital turnover | 17.95 | 26.81 | 9.46 | 14.23 | 7.10 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,455,770K ÷ ($1,492,380K – $1,244,190K)
= 17.95
Floor & Decor Holdings Inc's working capital turnover has shown a fluctuating trend over the past five years. In 2020, the working capital turnover stood at 7.10, indicating that the company generated $7.10 of net sales revenue for each dollar of working capital invested.
Subsequently, there was a significant increase in 2021 to 14.23, suggesting that the company improved its efficiency in utilizing working capital to generate sales revenue. However, the ratio decreased in 2022 to 9.46 before experiencing a substantial surge in 2023 to 26.81, reflecting a remarkable improvement in working capital efficiency and sales generation capability.
In 2024, the working capital turnover decreased to 17.95 but remained at a relatively high level compared to the previous years. This indicates that Floor & Decor Holdings Inc has been effectively managing its working capital to support sales growth.
Overall, the upward and downward fluctuations in the working capital turnover over the years indicate varying levels of efficiency in utilizing working capital to drive sales revenue. It is essential for the company to maintain a balance between optimizing its working capital efficiency and supporting its sales growth strategy to ensure sustainable financial performance.
Peer comparison
Dec 31, 2024