Corning Incorporated (GLW)
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 | 13,118,000 | 12,611,000 | 12,393,000 | 12,385,000 | 12,588,000 | 13,000,000 | 13,315,000 | 13,687,000 | 14,189,000 | 14,459,000 | 14,586,000 | 14,472,000 | 14,082,000 | 13,756,000 | 13,142,000 | 12,202,000 | 11,303,000 | 10,770,000 | 10,703,000 | 11,082,000 |
| Total current assets | US$ in thousands | 7,992,000 | 7,676,000 | 7,121,000 | 6,971,000 | 7,212,000 | 7,298,000 | 7,293,000 | 6,877,000 | 7,453,000 | 7,804,000 | 7,883,000 | 7,861,000 | 7,659,000 | 7,679,000 | 7,648,000 | 8,103,000 | 8,004,000 | 8,058,000 | 6,846,000 | 6,946,000 |
| Total current liabilities | US$ in thousands | 4,919,000 | 4,637,000 | 4,526,000 | 4,175,000 | 4,319,000 | 4,285,000 | 4,411,000 | 4,773,000 | 5,175,000 | 5,167,000 | 5,530,000 | 5,061,000 | 4,806,000 | 4,337,000 | 4,624,000 | 3,513,000 | 3,767,000 | 3,849,000 | 3,020,000 | 3,191,000 |
| Working capital turnover | 4.27 | 4.15 | 4.78 | 4.43 | 4.35 | 4.31 | 4.62 | 6.51 | 6.23 | 5.48 | 6.20 | 5.17 | 4.94 | 4.12 | 4.35 | 2.66 | 2.67 | 2.56 | 2.80 | 2.95 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,118,000K ÷ ($7,992,000K – $4,919,000K)
= 4.27
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.
Analyzing the data provided for Corning Incorporated's working capital turnover, we observe fluctuations in the ratio over the periods. The ratio ranged from 2.56 to 6.51, showing variations in the company's efficiency in utilizing its working capital to generate sales.
Initially, the working capital turnover ratio showed a decreasing trend from around 2.95 in March 2020 to 2.56 in September 2020. The ratio then started to increase consistently, reaching its peak at 6.51 in March 2023 before declining to around 4.27 by December 2024.
The increase in the working capital turnover ratio from 2020 to 2023 indicates that Corning Incorporated improved its efficiency in managing working capital to support revenue generation. However, the subsequent decline suggests a potential decrease in efficiency in utilizing working capital in the later periods.
It is important for the company to monitor and maintain an optimal working capital turnover ratio to ensure efficient utilization of resources and support sustainable business operations and growth.
Peer comparison
Dec 31, 2024
See also:
Corning Incorporated Working Capital Turnover (Quarterly Data)