Hillenbrand Inc (HI)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,182,800 | 3,108,000 | 3,038,000 | 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 |
| Total current assets | US$ in thousands | 1,509,900 | 1,637,100 | 1,628,600 | 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 |
| Total current liabilities | US$ in thousands | 1,189,100 | 1,213,600 | 1,212,100 | 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 |
| Working capital turnover | 9.92 | 7.34 | 7.29 | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,182,800K ÷ ($1,509,900K – $1,189,100K)
= 9.92
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Analyzing Hillenbrand Inc's working capital turnover over the past few quarters, we can see fluctuations in the ratio. The ratio has been trending upwards since the end of 2019, indicating an improvement in the company's efficiency in utilizing its working capital.
The working capital turnover ratio ranged from a low of 3.84 in March 2020 to a high of 9.92 in September 2024, showing variability in the company's working capital management efficiency. Overall, the company's working capital turnover has improved significantly over the past few years, reflecting better utilization of working capital to drive sales.
These positive trends in the working capital turnover ratio suggest that Hillenbrand Inc is becoming more efficient in managing its working capital to support its operations and generate revenue. This improvement indicates a positive trend in the company's overall financial performance and operational efficiency. It is essential for the company to sustain this momentum and continue optimizing its working capital management to support its growth and profitability in the future.
Peer comparison
Sep 30, 2024