Warrior Met Coal Inc (HCC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,703,690 | 1,735,450 | 1,045,640 | 784,294 | 1,279,610 |
| Total current assets | US$ in thousands | 1,069,170 | 1,173,110 | 627,201 | 467,483 | 444,046 |
| Total current liabilities | US$ in thousands | 147,670 | 153,124 | 122,128 | 170,318 | 128,952 |
| Working capital turnover | 1.85 | 1.70 | 2.07 | 2.64 | 4.06 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,703,690K ÷ ($1,069,170K – $147,670K)
= 1.85
Warrior Met Coal Inc's working capital turnover has fluctuated over the past five years, ranging from a high of 4.03 in 2019 to a low of 1.70 in 2022. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates better efficiency in managing working capital.
The trend in Warrior Met Coal Inc's working capital turnover shows a decreasing pattern over the years, potentially signaling a decrease in efficiency in utilizing working capital to generate sales revenue. This could be a cause for concern as it may indicate inefficiencies in managing the company's current assets and liabilities, impacting overall liquidity and profitability.
Further analysis is needed to understand the reasons behind the fluctuations in the working capital turnover ratio and to identify any underlying issues that may be affecting the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023