GE HealthCare Technologies Inc. (GEHC)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 18,952,000 | 19,284,000 | |||
| Total current assets | US$ in thousands | 9,410,000 | 9,468,000 | 9,240,000 | 9,604,000 | 8,318,000 |
| Total current liabilities | US$ in thousands | 8,981,000 | 7,565,000 | 7,581,000 | 8,236,000 | 7,191,000 |
| Working capital turnover | 44.18 | 10.13 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $18,952,000K ÷ ($9,410,000K – $8,981,000K)
= 44.18
The working capital turnover for GE HealthCare Technologies Inc. has shown a significant increase from 10.13 in September 2023 to 44.18 in December 2023. This indicates that the company has improved its efficiency in generating revenue relative to the level of working capital employed in its operations. A higher working capital turnover ratio generally suggests that the company is managing its working capital more effectively and is utilizing its resources efficiently to drive sales. It may also indicate a faster turnover of inventory and/or receivables, which can lead to improved liquidity and profitability. GE HealthCare Technologies Inc. should continue to monitor and maintain this positive trend in working capital turnover as it reflects the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023