Forward Air Corporation (FWRD)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,474,260	1,370,740	1,973,400	1,662,430	1,269,570
Total current assets	US$ in thousands	472,500	347,028	304,315	282,807	249,526
Total current liabilities	US$ in thousands	384,046	237,094	169,398	164,692	172,052
Working capital turnover		27.97	12.47	14.63	14.07	16.39

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,474,260K ÷ ($472,500K – $384,046K)
= 27.97

The working capital turnover ratio for Forward Air Corporation has fluctuated over the past five years. It decreased from 16.39 in December 31, 2020 to 14.07 in December 31, 2021, showing a decline in the efficiency of utilizing working capital. However, there was a slight improvement in 2022 with a ratio of 14.63 before decreasing again to 12.47 in the year ending December 31, 2023.

The most significant change occurred in December 31, 2024, where the working capital turnover ratio surged to 27.97. This substantial increase could indicate a more effective management of working capital, with the company generating significantly more revenue relative to its investment in working capital.

Overall, the working capital turnover ratio for Forward Air Corporation has shown varying trends, potentially reflecting changes in operating efficiency and the company's ability to convert working capital into revenue. An in-depth analysis would be required to understand the reasons behind these fluctuations and assess the company's overall financial performance.