Acushnet Holdings Corp (GOLF)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,457,090 | 2,382,000 | 2,270,340 | 2,147,930 | 1,612,170 |
| Total current assets | US$ in thousands | 973,873 | 996,692 | 1,059,080 | 969,176 | 799,807 |
| Total current liabilities | US$ in thousands | 472,707 | 451,135 | 548,625 | 483,024 | 357,679 |
| Working capital turnover | 4.90 | 4.37 | 4.45 | 4.42 | 3.65 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,457,090K ÷ ($973,873K – $472,707K)
= 4.90
Acushnet Holdings Corp's working capital turnover has been steadily increasing over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales. The working capital turnover ratio increased from 3.65 in December 31, 2020, to 4.90 in December 31, 2024. This suggests that the company has been able to generate almost 5 times its working capital in sales by the end of 2024.
The consistent upward trend in the working capital turnover ratio signifies that Acushnet Holdings Corp has been managing its working capital effectively, which is crucial for sustaining operations and growth. A higher working capital turnover ratio indicates that the company is efficiently utilizing its current assets to support sales activities. This can lead to improved liquidity, profitability, and overall financial performance.
Overall, the increasing trend in the working capital turnover ratio demonstrates Acushnet Holdings Corp's ability to optimize its working capital resources and generate sales efficiently over the years, reflecting positively on its operational efficiency and financial management.
Peer comparison
Dec 31, 2024