Corning Incorporated (GLW)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,588,000 | 14,189,000 | 14,082,000 | 11,303,000 | 11,503,000 |
| Total current assets | US$ in thousands | 7,212,000 | 7,453,000 | 7,659,000 | 8,004,000 | 7,463,000 |
| Total current liabilities | US$ in thousands | 4,319,000 | 5,175,000 | 4,806,000 | 3,767,000 | 3,521,000 |
| Working capital turnover | 4.35 | 6.23 | 4.94 | 2.67 | 2.92 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,588,000K ÷ ($7,212,000K – $4,319,000K)
= 4.35
The working capital turnover ratio for Corning, Inc. has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio signifies that the company is effectively utilizing its current assets and liabilities to support its operations and generate revenue.
In 2023, the working capital turnover ratio was 4.35, which represents a decrease from the previous year's ratio of 6.23. This decrease could indicate that Corning, Inc. may have become less efficient in utilizing its working capital to generate sales revenue during the year. However, despite the decrease, the ratio of 4.35 indicates that the company is still using its working capital relatively efficiently.
Comparing the 2023 ratio to those of the prior years, it is higher than the ratios in 2020 and 2019, suggesting an improvement in working capital efficiency over those years. Furthermore, the working capital turnover ratio in 2023 is lower than the ratio in 2022, indicating a decrease in efficiency from the previous year.
Overall, while the working capital turnover ratio for Corning, Inc. has fluctuated over the past five years, the company generally appears to be efficiently utilizing its working capital to generate sales revenue, with some variations in efficiency noted in recent years. It is important for investors and analysts to continue monitoring this ratio to assess the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023