Geo Group Inc (GEO)
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 | 4,609,468 | 4,616,848 | 4,606,381 | 4,632,051 | 4,602,201 | 4,413,311 | 4,400,195 | 4,374,056 | 4,414,967 | 2,206,263 | 2,237,828 | 2,262,240 | 2,274,336 | 2,317,930 | 2,357,239 | 2,364,065 | 2,356,221 | 2,333,941 | 2,283,952 | 2,261,249 |
| Total current assets | US$ in thousands | 528,505 | 538,659 | 451,976 | 501,248 | 555,008 | 515,727 | 1,023,410 | 1,022,820 | 943,908 | 932,989 | 868,640 | 700,963 | 711,323 | 500,073 | 510,320 | 476,526 | 541,728 | 517,599 | 532,884 | 604,613 |
| Total current liabilities | US$ in thousands | 437,464 | 433,326 | 347,208 | 396,098 | 437,212 | 427,425 | 389,205 | 408,371 | 378,842 | 420,605 | 385,732 | 423,056 | 411,296 | 421,877 | 400,921 | 385,319 | 395,928 | 408,605 | 409,652 | 708,785 |
| Working capital turnover | 50.63 | 43.83 | 43.97 | 44.05 | 39.07 | 49.98 | 6.94 | 7.12 | 7.81 | 4.31 | 4.63 | 8.14 | 7.58 | 29.64 | 21.55 | 25.92 | 16.16 | 21.41 | 18.53 | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,609,468K ÷ ($528,505K – $437,464K)
= 50.63
Geo Group, Inc.'s working capital turnover has shown fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively using its working capital to generate sales.
In Q4 2023, the working capital turnover ratio was 26.51, showing a significant increase compared to the previous quarter. This suggests that Geo Group, Inc. has improved its efficiency in utilizing its working capital to generate revenue.
Looking back at Q2 2022 and Q1 2022, the working capital turnover ratios were unusually low at 3.55 and 3.63, respectively. This indicates that during those quarters, the company was not efficiently utilizing its working capital to generate revenue.
Overall, the trend in working capital turnover for Geo Group, Inc. shows variations, with periods of high and low efficiency in utilizing working capital to drive revenue. It is essential for the company to maintain a balance and strive for consistent improvement in this ratio to support sustainable growth and profitability.
Peer comparison
Dec 31, 2023