Frontier Communications Parent Inc (FYBR)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,751,000	5,787,000	6,411,000	7,155,000	8,107,000
Total current assets	US$ in thousands	2,781,000	2,597,000	2,688,000	2,654,000	3,037,000
Total current liabilities	US$ in thousands	2,275,000	2,295,000	1,451,000	7,140,000	2,804,000
Working capital turnover		11.37	19.16	5.18	—	34.79

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,751,000K ÷ ($2,781,000K – $2,275,000K)
= 11.37

Frontier Communications Parent Inc's working capital turnover has exhibited significant fluctuations over the past five years. In 2019, the company achieved a high level of working capital turnover at 34.79, indicating that it effectively utilized its working capital to generate sales revenue. However, in the subsequent years, there was a noticeable decline in the working capital turnover ratio, with the ratio dropping to 5.18 in 2021, indicating a decrease in the efficiency of the company in utilizing its working capital to generate sales.

The working capital turnover ratio rebounded in 2022 to 19.16, suggesting an improvement in the company's efficiency in managing working capital. Finally, by the end of 2023, the ratio further increased to 11.37, signaling a positive trend in the efficiency of Frontier Communications Parent Inc in converting its working capital into sales revenue.

Overall, the fluctuations in the working capital turnover ratio for Frontier Communications Parent Inc over the past five years indicate varying levels of efficiency in managing working capital to support sales operations. This implies that the company's ability to efficiently utilize its working capital to generate revenue has been inconsistent but showed signs of improvement in the recent years.