Forward Air Corporation (FWRD)

Working capital turnover

		Mar 31, 2025	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
Revenue (ttm)	US$ in thousands	2,565,295	2,474,262	2,179,844	1,937,272	1,695,788	1,581,041	1,723,813	1,820,471	1,933,508	1,973,403	1,952,132	1,861,734	1,767,186	1,662,427	1,552,839	1,465,211	1,326,218	1,306,525	1,337,688	1,367,354
Total current assets	US$ in thousands	472,500	472,500	545,081	558,623	569,433	347,028	237,730	215,787	257,794	304,315	312,967	315,756	325,252	282,807	289,261	297,012	247,986	249,526	235,047	247,291
Total current liabilities	US$ in thousands	384,046	384,046	448,698	420,013	444,841	237,094	190,441	169,226	165,770	169,398	179,559	167,460	187,944	164,692	158,466	169,271	169,133	172,052	157,133	146,852
Working capital turnover		29.00	27.97	22.62	13.98	13.61	14.38	36.45	39.10	21.01	14.63	14.63	12.55	12.87	14.07	11.87	11.47	16.82	16.86	17.17	13.61

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,565,295K ÷ ($472,500K – $384,046K)
= 29.00

The working capital turnover ratio for Forward Air Corporation has varied over the periods, indicating the company's efficiency in managing its working capital to generate sales. The ratio measures how many times a company's working capital is used to generate revenue during a specific period.

From June 30, 2020, to September 30, 2020, the ratio improved significantly from 13.61 to 17.17, reflecting a more efficient utilization of working capital in generating sales. However, there was a slight dip in the ratio by December 31, 2020, though it remained relatively high at 16.86. The ratio remained fairly stable around the 16-17 range in the following quarters, suggesting consistent operational efficiency.

There was a noticeable decline in the working capital turnover ratio by June 30, 2021, and September 30, 2021, reaching 11.47 and 11.87, respectively. This decrease may indicate potential challenges in efficiently converting working capital into sales during these periods.

From December 31, 2021, to March 31, 2022, the ratio improved to 14.07, showing a better utilization of working capital compared to the previous quarters. However, there was a slight decline in efficiency by June 30, 2022, and September 30, 2022, with the ratio dropping to 12.55 and then increasing to 14.63 by December 31, 2022.

The working capital turnover ratio showed a significant improvement by March 31, 2023, reaching 21.01, indicating a more effective use of working capital to generate sales. This improvement was sustained in the subsequent periods, with the ratio peaking at 39.10 by June 30, 2023, and remaining high at 36.45 by September 30, 2023.

There was a notable decrease in efficiency by December 31, 2023, as the ratio dropped to 14.38, which may suggest challenges in managing working capital effectively during that period. However, the ratio rebounded to 13.61 by March 31, 2024, and continued to increase in the following quarters, reaching 29.00 by March 31, 2025.

Overall, the working capital turnover ratio of Forward Air Corporation has displayed fluctuations over the analyzed periods, with periods of both efficiency and challenges in effectively utilizing working capital to generate sales. It is important for the company to monitor and manage its working capital efficiently to support sustainable business operations and growth.