Hillenbrand Inc (HI)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,943,600 | 2,826,000 | 2,667,100 | 2,530,300 | 2,405,100 | 2,315,300 | 1,842,900 | 1,958,200 | 2,114,800 | 2,241,400 | 2,803,600 | 2,716,000 | 2,642,600 | 2,517,000 | 2,309,100 | 2,148,200 | 1,963,900 | 1,807,300 | 1,796,200 | 1,795,600 |
| Total current assets | US$ in thousands | 1,577,500 | 1,607,600 | 1,583,300 | 1,657,300 | 1,753,300 | 1,402,900 | 1,404,200 | 1,510,000 | 1,421,000 | 1,434,500 | 1,441,400 | 1,317,800 | 1,355,300 | 1,369,700 | 1,244,500 | 1,364,100 | 1,222,100 | 1,023,200 | 658,200 | 650,400 |
| Total current liabilities | US$ in thousands | 1,230,800 | 1,291,000 | 1,179,300 | 1,313,800 | 1,263,900 | 1,077,800 | 1,054,700 | 1,074,300 | 1,029,400 | 1,035,100 | 1,023,000 | 920,500 | 875,500 | 852,100 | 769,000 | 805,200 | 879,800 | 589,300 | 526,300 | 505,800 |
| Working capital turnover | 8.49 | 8.93 | 6.60 | 7.37 | 4.91 | 7.12 | 5.27 | 4.49 | 5.40 | 5.61 | 6.70 | 6.84 | 5.51 | 4.86 | 4.86 | 3.84 | 5.74 | 4.17 | 13.62 | 12.42 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,943,600K ÷ ($1,577,500K – $1,230,800K)
= 8.49
The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Based on the data provided for Hillenbrand Inc, the working capital turnover has fluctuated over the past eight quarters. In Q1 2024, the ratio was 8.49, indicating that the company generated $8.49 in sales for every dollar of working capital invested. This was a slight decrease compared to the Q4 2023 ratio of 8.93, but still reflects efficient utilization of working capital.
The trend in the working capital turnover ratio shows variability, with peaks and troughs in different quarters. The highest ratio was seen in Q4 2022 at 9.05, suggesting strong working capital efficiency during that period. On the other hand, the lowest ratio of 5.86 was observed in Q1 2023, indicating a temporary decline in efficiency.
Overall, Hillenbrand Inc has demonstrated relatively consistent effectiveness in generating sales from its working capital investments, as evidenced by the generally high turnover ratios across the quarters. Monitoring this ratio can provide insights into the company's operational efficiency and financial health over time.
Peer comparison
Dec 31, 2023