Green Plains Renewable Energy Inc (GPRE)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,295,743	3,497,394	3,559,601	3,714,359	3,662,845	3,551,121	3,342,935	3,054,963	2,827,168	2,503,613	2,180,884	1,844,490	1,923,719	2,160,632	2,368,920	2,611,466	2,417,238	2,285,069	2,441,767	2,618,906
Total current assets	US$ in thousands	732,730	757,543	816,318	830,554	928,750	935,613	1,159,700	1,162,610	1,117,750	1,117,530	1,029,910	1,010,540	642,353	508,677	516,055	566,385	667,913	622,055	1,086,190	1,082,950
Total current liabilities	US$ in thousands	384,962	402,472	513,791	478,839	486,922	420,602	647,574	580,657	471,804	404,304	370,627	421,479	452,556	331,480	324,012	461,201	541,791	483,915	716,756	765,939
Working capital turnover		9.48	9.85	11.77	10.56	8.29	6.90	6.53	5.25	4.38	3.51	3.31	3.13	10.14	12.19	12.34	24.83	19.17	16.54	6.61	8.26

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,295,743K ÷ ($732,730K – $384,962K)
= 9.48

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Green Plains Inc's working capital turnover has shown fluctuations over the past four quarters, ranging from 5.25 to 11.77. A higher ratio indicates that the company is able to generate more sales revenue with less working capital.

In Q2 2023, the working capital turnover ratio reached its highest point at 11.77, indicating a significant improvement in efficiency compared to the previous quarters. This suggests that Green Plains Inc was able to generate $11.77 in sales revenue for every dollar of working capital invested during that period.

In contrast, the ratio decreased to 5.25 in Q1 2022, signaling a lower efficiency in utilizing working capital to generate sales revenue. This could indicate potential issues with managing working capital effectively during that quarter.

Overall, it is important for Green Plains Inc to closely monitor its working capital turnover ratio to ensure optimal use of working capital resources and improve operational efficiency.