Geo Group Inc (GEO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,423,700 | 2,413,170 | 2,376,730 | 2,256,610 | 2,350,100 |
| Total current assets | US$ in thousands | 500,179 | 528,505 | 555,008 | 943,908 | 711,323 |
| Total current liabilities | US$ in thousands | 340,223 | 437,464 | 437,212 | 378,842 | 411,296 |
| Working capital turnover | 15.15 | 26.51 | 20.18 | 3.99 | 7.83 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,423,700K ÷ ($500,179K – $340,223K)
= 15.15
The working capital turnover ratio for Geo Group Inc has shown significant fluctuations over the years. In December 31, 2020, the ratio was 7.83, indicating that the company generated $7.83 of revenue for every dollar of working capital invested. However, in December 31, 2021, the ratio decreased to 3.99, suggesting a decrease in efficiency in utilizing working capital.
The following years saw a remarkable improvement in the working capital turnover ratio. By December 31, 2022, the ratio had significantly increased to 20.18, and by December 31, 2023, it surged even further to 26.51, demonstrating a substantial enhancement in the company's ability to generate revenue from its working capital.
Despite the impressive performance in the previous years, there was a slight decline in the working capital turnover ratio by December 31, 2024, where it stood at 15.15. This reduction suggests a potential decrease in efficiency in utilizing working capital for revenue generation compared to the previous year.
Overall, the working capital turnover ratio of Geo Group Inc has shown fluctuations, with notable improvements in certain years and a slight decrease in others. It is essential for the company to maintain a balance between efficient utilization of working capital and generating revenue to ensure sustainable growth and profitability.
Peer comparison
Dec 31, 2024