GE HealthCare Technologies Inc. (GEHC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 19,108,000 | 18,952,000 | 18,199,000 |
| Total current assets | US$ in thousands | 9,901,000 | 9,410,000 | 8,318,000 |
| Total current liabilities | US$ in thousands | 9,553,000 | 8,981,000 | 7,191,000 |
| Working capital turnover | 54.91 | 44.18 | 16.15 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,108,000K ÷ ($9,901,000K – $9,553,000K)
= 54.91
The working capital turnover ratio of GE HealthCare Technologies Inc. has shown a significant improvement over the years. In December 31, 2022, the working capital turnover stood at 16.15, indicating that the company generated $16.15 in net sales for every dollar of working capital invested. This ratio increased substantially to 44.18 by December 31, 2023, highlighting a more efficient utilization of working capital to generate sales.
Furthermore, by December 31, 2024, the working capital turnover ratio further surged to 54.91, signaling a notable enhancement in the company's efficiency in utilizing its working capital to drive revenue generation. This trend suggests that GE HealthCare Technologies Inc. has been effectively managing its working capital resources, potentially through streamlining operations, optimizing inventory levels, or improving receivables management.
A rising working capital turnover ratio is generally considered positive as it reflects the company's ability to generate sales using its working capital efficiently. This improvement indicates that GE HealthCare Technologies Inc. has been successful in converting its working capital into revenue, which could lead to increased profitability and overall financial health.
Peer comparison
Dec 31, 2024