Green Plains Renewable Energy Inc (GPRE)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,295,740 | 3,662,850 | 2,827,170 | 1,923,720 | 2,417,240 |
| Total current assets | US$ in thousands | 732,730 | 928,750 | 1,117,750 | 642,353 | 667,913 |
| Total current liabilities | US$ in thousands | 384,962 | 486,922 | 471,804 | 452,556 | 541,791 |
| Working capital turnover | 9.48 | 8.29 | 4.38 | 10.14 | 19.17 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,295,740K ÷ ($732,730K – $384,962K)
= 9.48
Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is able to convert its working capital into sales quickly. Green Plains Inc's working capital turnover has fluctuated over the years, with a significant decrease from 2019 to 2021, followed by a slight increase in 2022 and a significant spike in 2023.
In 2019, the company had a high working capital turnover of 19.17, indicating strong efficiency in generating sales from its working capital. However, this ratio dropped to 10.14 in 2020, suggesting a decrease in efficiency in utilizing working capital to generate revenue. The ratio further declined to 4.38 in 2021, indicating a significant decrease in efficiency.
The improvement in 2022 with a working capital turnover of 8.29 suggests a better utilization of working capital compared to the previous year. In 2023, the ratio increased to 9.48, indicating a further improvement in the efficiency of converting working capital into sales revenue.
Overall, Green Plains Inc's working capital turnover has shown variability over the years, with fluctuations possibly influenced by changes in the company's working capital management strategies and sales performance. It is essential for the company to consistently monitor and manage its working capital efficiently to support its sales growth and operational activities.
Peer comparison
Dec 31, 2023