Graco Inc (GGG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,195,610 | 2,143,520 | 1,987,610 | 1,650,120 | 1,646,040 |
| Total current assets | US$ in thousands | 1,365,810 | 1,205,620 | 1,363,620 | 1,023,800 | 791,468 |
| Total current liabilities | US$ in thousands | 395,200 | 399,917 | 506,792 | 321,389 | 285,322 |
| Working capital turnover | 2.26 | 2.66 | 2.32 | 2.35 | 3.25 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,195,610K ÷ ($1,365,810K – $395,200K)
= 2.26
The working capital turnover ratio for Graco Inc has shown some fluctuations over the past five years. The ratio decreased from 3.25 in 2019 to 2.35 in 2020, indicating a decline in the efficiency of utilizing working capital to generate revenue. However, there was a slight improvement in 2021 with a ratio of 2.32, although it remained below the 2019 level.
In 2022, there was a notable increase in the working capital turnover ratio to 2.66, suggesting a more efficient utilization of working capital to generate sales. This improvement was followed by a decrease in 2023 to 2.26, which indicates a potential decline in efficiency in the company's working capital management.
Overall, the working capital turnover ratio for Graco Inc has shown some variability, indicating fluctuations in the company's ability to generate revenue relative to the amount of working capital invested. Further analysis of the company's working capital management practices and operational efficiency may be warranted to identify areas for improvement.
Peer comparison
Dec 31, 2023