Harley-Davidson Inc (HOG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,186,800 | 5,836,480 | 5,755,130 | 5,336,310 | 4,054,380 |
| Total current assets | US$ in thousands | 4,996,640 | 5,163,730 | 4,750,650 | 4,550,090 | 5,845,430 |
| Total current liabilities | US$ in thousands | 3,557,490 | 3,384,260 | 3,533,910 | 3,342,890 | 3,981,950 |
| Working capital turnover | 3.60 | 3.28 | 4.73 | 4.42 | 2.18 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,186,800K ÷ ($4,996,640K – $3,557,490K)
= 3.60
The working capital turnover for Harley-Davidson Inc has been showing an upward trend over the years. In December 31, 2020, the company had a working capital turnover of 2.18, which increased significantly to 4.42 by December 31, 2021. The trend continued in the following years with ratios of 4.73, 3.28, and 3.60 for December 31, 2022, 2023, and 2024 respectively.
This improvement in working capital turnover indicates that the company is efficiently utilizing its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is effectively managing its current assets and liabilities to support its operations and sales activities. However, the slight decrease in the ratio from 2022 to 2023 could indicate a potential slowdown in efficiency during that period.
Overall, the increasing trend in working capital turnover for Harley-Davidson Inc reflects positively on the company's operational efficiency and financial management in recent years. It suggests that the company is effectively utilizing its resources to support its sales activities, which can be a key indicator of financial strength and sustainable growth.
Peer comparison
Dec 31, 2024