Hayward Holdings Inc (HAYW)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 917,868 | 1,256,620 | 1,337,320 |
| Total current assets | US$ in thousands | 724,741 | 612,284 | 750,521 |
| Total current liabilities | US$ in thousands | 239,683 | 232,410 | 303,864 |
| Working capital turnover | 1.89 | 3.31 | 2.99 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $917,868K ÷ ($724,741K – $239,683K)
= 1.89
Hayward Holdings Inc's working capital turnover has shown a declining trend over the past three years. In 2021, the company had a working capital turnover of 3.14, indicating that the company generated $3.14 in revenue for every $1 of working capital invested. This ratio declined to 3.46 in 2022 and further dropped to 2.05 in 2023.
A lower working capital turnover ratio suggests that the company is less efficient in utilizing its working capital to generate sales revenue. This may be indicative of either a decrease in sales relative to the amount of working capital invested or an increase in the level of working capital required to support sales.
Overall, the declining trend in working capital turnover for Hayward Holdings Inc highlights potential inefficiencies in working capital management that may require further investigation to identify and address underlying issues.
Peer comparison
Dec 31, 2023