Hasbro Inc (HAS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,003,300 | 5,856,700 | 6,420,400 | 5,465,400 | 4,720,200 |
| Total current assets | US$ in thousands | 2,323,600 | 2,999,100 | 3,728,100 | 3,846,600 | 6,747,520 |
| Total current liabilities | US$ in thousands | 2,056,400 | 2,189,700 | 2,455,900 | 2,403,300 | 1,257,080 |
| Working capital turnover | 18.72 | 7.24 | 5.05 | 3.79 | 0.86 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,003,300K ÷ ($2,323,600K – $2,056,400K)
= 18.72
Hasbro, Inc.'s working capital turnover has been increasing steadily over the past five years, indicating improved efficiency in utilizing its working capital. The working capital turnover ratio measures how effectively a company is able to generate sales revenue from its working capital.
In 2019, the working capital turnover ratio was 0.86, suggesting that Hasbro was generating minimal sales relative to its working capital. However, there has been a significant improvement each year since then, with the ratio reaching 18.72 in 2023. This indicates that for every dollar of working capital invested, Hasbro generated $18.72 in sales revenue in 2023.
The trend of increasing working capital turnover is a positive indication of Hasbro's ability to efficiently manage its working capital and convert it into sales. This improvement may be attributed to better inventory management, accounts receivable collection, and overall operational efficiency within the company.
Overall, the increasing trend in working capital turnover reflects positively on Hasbro, signaling improved operational performance and financial efficiency.