Green Plains Renewable Energy Inc (GPRE)

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 2,458,796 2,587,166 2,821,201 3,060,008 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
Total current assets US$ in thousands 569,032 561,367 551,820 588,441 732,730 757,543 816,318 830,554 928,750 935,613 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
Total current liabilities US$ in thousands 385,687 316,122 328,464 336,402 384,962 402,472 513,791 478,839 486,922 420,602 647,574 580,657 471,804 404,304 370,627 421,479 452,556 331,480 324,012 461,201
Working capital turnover 13.41 10.55 12.63 12.14 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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,458,796K ÷ ($569,032K – $385,687K)
= 13.41

The working capital turnover of Green Plains Renewable Energy Inc has been fluctuating over the years, ranging from a high of 24.83 in March 2020 to a low of 3.13 in March 2021. This ratio measures the efficiency of the company in utilizing its working capital to generate sales. A higher turnover ratio indicates that the company is efficiently managing its working capital to support sales growth.

From the data provided, we observe a general declining trend in the working capital turnover ratio from 2020 to 2021, which could indicate potential inefficiencies in the management of working capital during that period. However, there has been a gradual improvement in the ratio from 2021 onwards, with the ratio peaking at 13.41 in December 2024.

It is important for Green Plains Renewable Energy Inc to monitor and analyze its working capital turnover regularly to ensure that the company is effectively managing its working capital to support business operations and sales growth. The increasing trend in the working capital turnover ratio from 2021 to 2024 suggests that the company may have improved its working capital management practices over time.