Forward Air Corporation (FWRD)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,571,371	1,711,459	1,809,146	1,923,575	1,965,894	1,946,041	1,856,214	1,761,536	1,655,923	1,547,601	1,460,946	1,323,276	1,269,573	1,238,888	1,220,574	1,241,783	1,215,187	1,252,092	1,269,784	1,297,240
Total current assets	US$ in thousands	347,028	237,730	215,787	257,794	304,315	312,967	315,756	325,252	282,807	289,261	297,012	247,986	245,896	235,047	247,291	241,189	236,318	215,711	193,072	202,071
Total current liabilities	US$ in thousands	237,094	190,441	169,226	165,770	169,398	179,559	167,460	187,944	164,692	158,466	169,271	169,133	171,620	157,133	146,852	143,328	137,164	139,775	136,635	116,646
Working capital turnover		14.29	36.19	38.86	20.90	14.57	14.59	12.52	12.83	14.02	11.83	11.44	16.78	17.09	15.90	12.15	12.69	12.26	16.49	22.50	15.19

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,571,371K ÷ ($347,028K – $237,094K)
= 14.29

The working capital turnover ratio for Forward Air Corporation has varied over the past few quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales.

Looking at the trend, there seems to be some fluctuation in the ratio. The highest working capital turnover ratio was observed in September 2023 and June 2023, indicating that the company was able to generate significant sales revenue relative to its working capital during those periods. This could imply efficient management of working capital to drive sales.

Conversely, there are quarters with lower ratios such as in March 2021 and March 2020. These lower ratios suggest that during those periods, the company may have had challenges in efficiently utilizing its working capital to generate sales.

Overall, it is important for Forward Air Corporation to closely monitor and manage its working capital turnover to ensure optimal utilization of resources and effectively drive sales growth.