Graco Inc (GGG)
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 | 2,195,606 | 2,184,007 | 2,189,979 | 2,178,882 | 2,143,521 | 2,128,095 | 2,069,147 | 2,027,764 | 1,987,608 | 1,918,329 | 1,870,949 | 1,730,677 | 1,650,115 | 1,592,067 | 1,553,306 | 1,614,742 | 1,646,045 | 1,640,191 | 1,655,572 | 1,651,814 |
| Total current assets | US$ in thousands | 1,365,810 | 1,377,330 | 1,410,450 | 1,288,460 | 1,205,620 | 1,285,900 | 1,276,480 | 1,197,220 | 1,363,620 | 1,333,070 | 1,203,950 | 1,127,390 | 1,023,800 | 1,061,190 | 1,038,290 | 1,048,770 | 791,468 | 772,627 | 798,893 | 733,509 |
| Total current liabilities | US$ in thousands | 395,200 | 395,888 | 489,338 | 381,698 | 399,917 | 430,768 | 424,058 | 402,313 | 506,792 | 427,214 | 358,724 | 323,520 | 321,389 | 326,453 | 310,380 | 311,763 | 285,322 | 287,527 | 359,602 | 354,044 |
| Working capital turnover | 2.26 | 2.23 | 2.38 | 2.40 | 2.66 | 2.49 | 2.43 | 2.55 | 2.32 | 2.12 | 2.21 | 2.15 | 2.35 | 2.17 | 2.13 | 2.19 | 3.25 | 3.38 | 3.77 | 4.35 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,195,606K ÷ ($1,365,810K – $395,200K)
= 2.26
Graco Inc's working capital turnover has shown fluctuations over the past few quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue.
From the data provided, we can observe that the working capital turnover ratio fluctuated between 2.12 to 4.35 over the past few years. A higher turnover ratio indicates that Graco Inc is effectively using its working capital to generate sales, while a lower ratio suggests inefficiency.
In the most recent quarter, the working capital turnover ratio was 2.26, which indicates that for every dollar of working capital invested, Graco Inc generated $2.26 in sales. This suggests a moderate level of efficiency in utilizing working capital for revenue generation.
It is important for Graco Inc to closely monitor and manage its working capital turnover ratio to ensure optimal utilization of resources and maximize profitability. Fluctuations in this ratio may be influenced by various factors such as changes in sales volume, inventory management, payment terms, and overall operational efficiency. Further analysis of the company's operations and financial performance would provide deeper insights into the factors impacting the working capital turnover ratio.
Peer comparison
Dec 31, 2023