Chart Industries Inc (GTLS)
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 | 3,032,900 | 2,546,800 | 2,140,800 | 1,710,400 | 1,594,000 | 1,542,100 | 1,458,600 | 1,372,300 | 1,307,700 | 1,241,200 | 1,181,300 | 1,165,200 | 1,190,400 | 1,220,400 | 1,304,000 | 1,307,300 | 1,280,700 | 1,228,400 | 1,145,600 | 1,476,200 |
| Total current assets | US$ in thousands | 2,214,400 | 2,255,800 | 2,555,600 | 2,163,300 | 3,690,900 | 929,500 | 1,012,400 | 910,800 | 853,500 | 859,500 | 875,300 | 713,800 | 703,000 | 728,500 | 684,300 | 651,100 | 673,600 | 683,900 | 710,700 | 645,200 |
| Total current liabilities | US$ in thousands | 1,866,200 | 1,802,800 | 1,845,500 | 1,732,600 | 1,081,600 | 754,900 | 775,200 | 721,600 | 693,900 | 719,500 | 675,800 | 660,300 | 634,800 | 352,900 | 359,600 | 358,100 | 378,300 | 374,400 | 354,900 | 579,200 |
| Working capital turnover | 8.71 | 5.62 | 3.01 | 3.97 | 0.61 | 8.83 | 6.15 | 7.25 | 8.19 | 8.87 | 5.92 | 21.78 | 17.45 | 3.25 | 4.02 | 4.46 | 4.34 | 3.97 | 3.22 | 22.37 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,032,900K ÷ ($2,214,400K – $1,866,200K)
= 8.71
The working capital turnover of Chart Industries Inc has experienced fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue over a specific period. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations.
In Q4 2023, the working capital turnover ratio was 9.63, signaling a significant improvement compared to the previous quarter. This suggests that the company efficiently converted its working capital into sales revenue during this period. However, it is essential to analyze the trend over multiple periods to gain a more comprehensive understanding of the company's working capital management.
In comparison, Q2 2022 had a lower working capital turnover ratio of 3.24, indicating a potential inefficiency in utilizing working capital to drive sales. The subsequent quarters saw fluctuations in the ratio, with Q3 2022 showing a significant increase to 8.88, followed by a slight decrease in Q1 2022 to 7.31.
Overall, the working capital turnover ratio of Chart Industries Inc has shown variability, with some quarters exhibiting strong efficiency in working capital utilization and others indicating potential room for improvement. Further analysis of the company's working capital management practices and cash flow dynamics would be beneficial to assess its overall financial health and operational effectiveness.