Hasbro Inc (HAS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,135,500 | 5,003,300 | 5,856,700 | 6,420,400 | 5,465,400 |
| Total current assets | US$ in thousands | 2,242,500 | 2,323,600 | 2,999,100 | 3,728,100 | 3,846,640 |
| Total current liabilities | US$ in thousands | 1,401,300 | 2,056,400 | 2,189,700 | 2,455,900 | 2,403,340 |
| Working capital turnover | 4.92 | 18.72 | 7.24 | 5.05 | 3.79 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,135,500K ÷ ($2,242,500K – $1,401,300K)
= 4.92
The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales revenue. In the case of Hasbro Inc, we observe an increasing trend in the working capital turnover over the past five years.
The working capital turnover ratio has improved from 3.79 in December 2020 to 5.05 in December 2021, indicating a more efficient use of the company's working capital to generate sales. This trend continued as the ratio further increased to 7.24 in December 2022, reflecting a significant improvement in the company's working capital management.
However, there was a substantial spike in the working capital turnover ratio to 18.72 in December 2023, suggesting a very high level of efficiency in converting working capital into sales during that year. It is important to investigate the reasons behind this sudden surge to ensure that it is sustainable.
Subsequently, in December 2024, the working capital turnover ratio decreased to 4.92. Although lower than the peak in the previous year, this ratio is still higher than the initial values, indicating a relatively efficient use of working capital compared to the base year.
Overall, the increasing trend in Hasbro Inc's working capital turnover ratio signifies ongoing improvements in the company's management of its working capital resources to support sales growth. Further analysis and monitoring are recommended to assess the sustainability of this positive trend.