Graham Holdings Co (GHC)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 4,394,680 3,881,520 3,193,800 3,072,330 2,932,100
Total current assets US$ in thousands 1,849,300 1,679,260 1,847,170 1,774,190 1,663,480
Total current liabilities US$ in thousands 1,229,680 1,145,170 1,166,340 949,646 1,041,870
Working capital turnover 7.09 7.27 4.69 3.73 4.72

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,394,680K ÷ ($1,849,300K – $1,229,680K)
= 7.09

The working capital turnover of Graham Holdings Co. has fluctuated over the past five years. In 2023, the company achieved a working capital turnover ratio of 7.13, reflecting the number of times the company's working capital was used to generate revenue during the year. This ratio decreased slightly from 7.35 in 2022 but remained significantly higher than in 2021 (4.68), 2020 (3.50), and 2019 (4.72).

A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to generate sales. Graham Holdings Co. has shown improvement in this aspect, as its working capital turnover has generally increased over the years. This suggests that the company has become more effective in utilizing its current assets to support its operations and generate revenue.

Overall, an increasing trend in the working capital turnover ratio is a positive sign for Graham Holdings Co., indicating improved efficiency in its working capital management and potential for stronger financial performance in the future.