Chart Industries Inc (GTLS)
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 | 4,808,700 | 4,716,900 | 5,174,000 | 5,669,300 | 4,608,100 | 4,034,500 | 2,927,000 | 1,796,200 | 1,612,400 | 1,549,900 | 1,466,100 | 1,383,300 | 1,317,700 | 1,251,200 | 1,196,100 | 1,184,500 | 1,217,100 | 1,247,100 | 1,331,700 | 1,330,900 |
| Total current assets | US$ in thousands | 2,465,400 | 2,548,300 | 2,444,700 | 2,371,300 | 2,214,400 | 2,179,000 | 2,248,200 | 2,232,300 | 3,690,900 | 929,500 | 1,012,400 | 910,800 | 853,500 | 859,500 | 875,300 | 713,800 | 703,000 | 659,100 | 684,300 | 651,100 |
| Total current liabilities | US$ in thousands | 1,789,800 | 2,002,400 | 1,926,200 | 1,893,700 | 1,866,200 | 1,802,800 | 1,845,500 | 1,781,200 | 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 |
| Working capital turnover | 7.12 | 8.64 | 9.98 | 11.87 | 13.23 | 10.72 | 7.27 | 3.98 | 0.62 | 8.88 | 6.18 | 7.31 | 8.26 | 8.94 | 6.00 | 22.14 | 17.85 | 4.07 | 4.10 | 4.54 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,808,700K ÷ ($2,465,400K – $1,789,800K)
= 7.12
Working capital turnover is a financial ratio that measures a company's ability to efficiently utilize its working capital to generate sales. In the case of Chart Industries Inc, the working capital turnover has fluctuated over the period from March 31, 2020, to December 31, 2024.
Initially, the working capital turnover was relatively stable around the range of 4 to 6 times, indicating that for each dollar invested in working capital, the company generated sales 4 to 6 times. However, there were significant spikes in the ratio in December 31, 2020, and March 31, 2021, where the turnover dramatically increased to 17.85 and 22.14 times, respectively. This suggests that during these periods, the company efficiently used its working capital to drive sales growth.
Subsequently, the turnover ratio decreased and remained relatively steady around 6 to 9 times from mid-2021 to mid-2024. This indicates a consistent but lower level of efficiency in utilizing working capital to generate sales compared to the peak periods in 2020 and 2021.
In December 31, 2022, there was a significant drop in the working capital turnover to 0.62 times, which is abnormally low and could suggest potential inefficiencies or issues with working capital management during that period. However, the ratio gradually improved in the following quarters.
Overall, the working capital turnover ratio for Chart Industries Inc has shown variability but generally remained at acceptable levels, reflecting the company's ability to efficiently convert working capital into sales over the analyzed period.