Fortrea Holdings Inc. (FTRE)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
Revenue (ttm) US$ in thousands 2,646,300 2,690,400 2,756,600 2,905,600
Total current assets US$ in thousands 948,200 936,900 887,700 1,200,000
Total current liabilities US$ in thousands 949,500 795,800 749,000 818,300
Working capital turnover 19.07 19.87 7.61

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,646,300K ÷ ($948,200K – $949,500K)
= —

Fortrea Holdings Inc.'s working capital turnover has shown a fluctuating trend over the quarters presented in the data. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.

- In March 31, 2024, the working capital turnover was reported at 7.61, indicating that the company generated $7.61 in sales for every $1 of working capital invested during that period.
- In June 30, 2024, the working capital turnover significantly increased to 19.87, reflecting a substantial improvement in the efficiency of working capital utilization in generating sales revenue.
- The trend continued in September 30, 2024, with a working capital turnover of 19.07, showing consistency in the company's ability to efficiently manage its working capital to drive sales.
- However, in December 31, 2024, the data is not available ("—"), thus preventing a direct comparison with previous periods.

Overall, the increasing trend in working capital turnover until September 30, 2024, indicates that Fortrea Holdings Inc. has been effectively using its working capital to support revenue generation. However, further analysis would be needed to understand the reasons behind the fluctuations and the impact on the company's overall financial performance and liquidity management.


Peer comparison

Dec 31, 2024