Helix Energy Solutions Group Inc (HLX)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,358,560	1,289,730	873,100	674,728	733,555
Total current assets	US$ in thousands	709,682	697,841	460,589	529,538	525,645
Total current liabilities	US$ in thousands	304,416	448,618	297,955	278,283	279,307
Working capital turnover		3.35	5.18	5.37	2.69	2.98

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,358,560K ÷ ($709,682K – $304,416K)
= 3.35

Working capital turnover is a key financial ratio used to assess how efficiently a company is managing its working capital to generate revenue. The working capital turnover ratio is calculated by dividing net sales by the average working capital during a specific period.

Analyzing the data provided for Helix Energy Solutions Group Inc from 2020 to 2024, we observe fluctuations in the working capital turnover ratio. In 2020, the ratio was 2.98, indicating that for every dollar of working capital, the company generated $2.98 of revenue during the year.

In 2021, the ratio decreased to 2.69, suggesting a decrease in efficiency in utilizing working capital to generate sales. However, Helix Energy Solutions Group Inc improved its performance in managing working capital in the subsequent years.

By 2022, the working capital turnover ratio increased significantly to 5.37, indicating a more efficient use of working capital to generate revenue compared to the previous year. This trend continued in 2023 with a ratio of 5.18, signaling continued effectiveness in managing working capital.

In 2024, the working capital turnover ratio slightly decreased to 3.35, which is still higher than the ratio in 2021. Overall, the fluctuation in the working capital turnover ratio over the years suggests that Helix Energy Solutions Group Inc has made improvements in managing its working capital efficiently, leading to increased revenue generation.