Hayward Holdings Inc (HAYW)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,051,610 | 992,452 | 1,314,140 | 1,401,790 | 875,400 |
| Total current assets | US$ in thousands | 766,969 | 724,741 | 612,284 | 750,521 | 424,400 |
| Total current liabilities | US$ in thousands | 312,982 | 239,683 | 232,410 | 303,864 | 218,600 |
| Working capital turnover | 2.32 | 2.05 | 3.46 | 3.14 | 4.25 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,051,610K ÷ ($766,969K – $312,982K)
= 2.32
Based on the provided data for Hayward Holdings Inc's working capital turnover, we observe a fluctuating trend over the years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
Hayward Holdings Inc's working capital turnover decreased from 4.25 in December 31, 2020, to 3.14 in December 31, 2021, indicating a decline in the efficiency of converting working capital into sales. However, there was a slight improvement in efficiency in the subsequent years, with the ratio reaching 3.46 in December 31, 2022.
In December 31, 2023, there was a significant drop in the working capital turnover to 2.05, suggesting a decrease in the company's ability to generate sales relative to the amount of working capital invested. This decline may raise concerns about the management of working capital and potential inefficiencies in operations.
Subsequently, the ratio increased to 2.32 in December 31, 2024, showing a slight improvement in the utilization of working capital to generate sales. Overall, the fluctuating trend in Hayward Holdings Inc's working capital turnover indicates the need for a closer examination of the company's working capital management practices to enhance operational efficiency and optimize financial performance.
Peer comparison
Dec 31, 2024