Warrior Met Coal Inc (HCC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,525,220 | 1,703,690 | 1,735,450 | 1,045,640 | 784,294 |
| Total current assets | US$ in thousands | 887,062 | 1,069,170 | 1,173,110 | 627,201 | 467,483 |
| Total current liabilities | US$ in thousands | 170,430 | 147,670 | 153,124 | 122,128 | 170,318 |
| Working capital turnover | 2.13 | 1.85 | 1.70 | 2.07 | 2.64 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,525,220K ÷ ($887,062K – $170,430K)
= 2.13
Warrior Met Coal Inc's working capital turnover has shown a declining trend over the past five years. The ratio has decreased from 2.64 in December 31, 2020, to 2.07 in December 31, 2021, and further dropped to 1.70 in December 31, 2022. There was a slight improvement in December 31, 2023, where it increased to 1.85, but it then rose to 2.13 in December 31, 2024.
A working capital turnover ratio below 1 indicates inefficient utilization of working capital. Despite the fluctuations, Warrior Met Coal Inc's working capital turnover remains above 1, indicating that the company is effectively managing its working capital to generate sales. However, the decreasing trend in recent years may indicate potential inefficiencies in managing working capital or changes in the company's operations that impact efficiency. This trend should be monitored closely to ensure the company maintains adequate working capital levels for its operations.
Peer comparison
Dec 31, 2024