Graco Inc (GGG)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,113,316 | 2,131,287 | 2,151,747 | 2,158,148 | 2,195,605 | 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 |
| Total current assets | US$ in thousands | 1,497,440 | 1,612,500 | 1,524,230 | 1,444,230 | 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 |
| Total current liabilities | US$ in thousands | 405,808 | 360,373 | 362,335 | 351,687 | 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 |
| Working capital turnover | 1.94 | 1.70 | 1.85 | 1.98 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,113,316K ÷ ($1,497,440K – $405,808K)
= 1.94
Graco Inc's working capital turnover ratio has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio indicates the efficiency with which Graco Inc is utilizing its working capital to generate sales. A higher ratio typically suggests that the company is generating more sales with less working capital investment.
From March 2020 to December 2021, Graco Inc's working capital turnover ratio generally increased from 2.19 to 2.32, indicating improving efficiency in generating sales with its working capital. However, a decline was observed in March 2022 to 2.15, before rebounding to reach a peak of 2.66 by December 31, 2022. This peak suggests that Graco Inc was very efficient in utilizing its working capital to generate sales at that point.
Subsequently, there was a slight decline in the ratio, with a low of 1.70 on September 30, 2024. This decrease may indicate a relative decrease in efficiency in generating sales with the available working capital during that period. Overall, the working capital turnover ratio of Graco Inc has shown variability, with peaks and troughs, reflecting the changing efficiency of the company in utilizing its working capital.
Peer comparison
Dec 31, 2024