Graco Inc (GGG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,113,320 | 2,195,610 | 2,143,520 | 1,987,610 | 1,650,120 |
| Total current assets | US$ in thousands | 1,497,440 | 1,365,810 | 1,205,620 | 1,363,620 | 1,023,800 |
| Total current liabilities | US$ in thousands | 405,808 | 395,200 | 399,917 | 506,792 | 321,389 |
| Working capital turnover | 1.94 | 2.26 | 2.66 | 2.32 | 2.35 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,113,320K ÷ ($1,497,440K – $405,808K)
= 1.94
The working capital turnover for Graco Inc has varied over the past five years.
In December 31, 2020, the working capital turnover was 2.35, indicating that the company generated $2.35 in revenue for every $1 of working capital invested. This ratio slightly decreased to 2.32 by December 31, 2021, suggesting a decrease in efficiency in utilizing working capital.
However, there was a significant improvement in efficiency by December 31, 2022, with the working capital turnover rising to 2.66. This indicates that the company was able to generate more revenue for each dollar of working capital during that period.
Subsequently, there was a decline in efficiency as the working capital turnover decreased to 2.26 by December 31, 2023, which suggests that the company may not have been utilizing its working capital as effectively in generating revenues.
By December 31, 2024, the working capital turnover further decreased to 1.94, indicating a significant drop in efficiency in utilizing working capital to generate revenue.
Overall, the trend in the working capital turnover for Graco Inc shows fluctuations over the five-year period, with periods of both improvement and decline in efficiency in utilizing working capital to generate revenue.
Peer comparison
Dec 31, 2024