Floor & Decor Holdings Inc (FND)
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 | 4,455,780 | 4,396,480 | 4,386,360 | 4,389,120 | 4,413,880 | 4,413,830 | 4,403,840 | 4,357,790 | 4,264,470 | 4,130,735 | 3,909,468 | 3,679,726 | 3,433,533 | 3,242,850 | 3,051,144 | 2,653,388 | 2,425,788 | 2,229,138 | 2,065,384 | 2,123,343 |
| Total current assets | US$ in thousands | 1,492,380 | 1,388,860 | 1,342,200 | 1,256,080 | 1,316,640 | 1,336,100 | 1,335,530 | 1,328,470 | 1,457,480 | 1,497,090 | 1,511,270 | 1,322,480 | 1,273,340 | 1,294,210 | 1,165,440 | 1,061,880 | 1,040,460 | 973,969 | 829,981 | 950,995 |
| Total current liabilities | US$ in thousands | 1,244,190 | 1,193,020 | 1,149,190 | 1,073,640 | 1,152,010 | 1,174,380 | 1,116,180 | 1,006,530 | 1,006,760 | 1,061,430 | 1,197,280 | 1,093,320 | 1,032,020 | 1,011,990 | 860,214 | 672,978 | 698,836 | 618,918 | 533,690 | 506,497 |
| Working capital turnover | 17.95 | 22.45 | 22.73 | 24.06 | 26.81 | 27.29 | 20.08 | 13.54 | 9.46 | 9.48 | 12.45 | 16.06 | 14.23 | 11.49 | 10.00 | 6.82 | 7.10 | 6.28 | 6.97 | 4.78 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,455,780K ÷ ($1,492,380K – $1,244,190K)
= 17.95
Floor & Decor Holdings Inc has demonstrated varying levels of efficiency in managing its working capital over the years as evidenced by its working capital turnover ratio. The company's working capital turnover ratio has shown an increasing trend from 4.78 in March 2020 to 22.45 in September 2024.
A high working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales. The significant increase in the ratio over the years suggests that Floor & Decor Holdings Inc has been able to enhance its operational efficiency and optimize its working capital management.
It is important to note that a very high working capital turnover ratio could also indicate a company's aggressiveness in managing its working capital, which may involve risks such as potential liquidity issues or decreased flexibility in operations. Therefore, it is crucial for the company to strike a balance between maximizing efficiency and maintaining financial stability.
Overall, the upward trend in Floor & Decor Holdings Inc's working capital turnover ratio reflects the company's effective management of working capital to support its business operations and generate sales growth over the years.
Peer comparison
Dec 31, 2024