Harley-Davidson Inc (HOG)
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 | 5,836,480 | 5,925,550 | 6,025,070 | 6,048,640 | 5,755,140 | 5,629,290 | 5,346,020 | 5,408,990 | 5,336,310 | 5,045,102 | 4,845,472 | 4,178,639 | 4,054,369 | 4,401,417 | 4,508,257 | 5,275,650 | 5,361,790 | 5,435,380 | 5,478,530 | 5,559,130 |
| Total current assets | US$ in thousands | 5,163,730 | 5,422,810 | 5,014,420 | 5,290,510 | 4,750,650 | 5,012,180 | 5,308,170 | 4,387,260 | 4,550,090 | 4,708,420 | 4,469,600 | 5,187,140 | 5,845,430 | 6,156,730 | 6,811,830 | 4,976,380 | 4,202,820 | 4,089,000 | 4,312,160 | 4,374,080 |
| Total current liabilities | US$ in thousands | 3,384,260 | 2,672,820 | 2,466,460 | 3,084,580 | 3,533,910 | 3,679,910 | 3,675,900 | 3,283,260 | 3,342,890 | 3,430,110 | 3,451,150 | 3,454,600 | 3,981,950 | 4,217,430 | 4,655,100 | 4,580,070 | 3,196,770 | 3,698,750 | 3,742,250 | 3,590,060 |
| Working capital turnover | 3.28 | 2.15 | 2.36 | 2.74 | 4.73 | 4.23 | 3.28 | 4.90 | 4.42 | 3.95 | 4.76 | 2.41 | 2.18 | 2.27 | 2.09 | 13.31 | 5.33 | 13.93 | 9.61 | 7.09 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,836,480K ÷ ($5,163,730K – $3,384,260K)
= 3.28
The working capital turnover ratio for Harley-Davidson, Inc. has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a relatively high working capital turnover of 2.16, which indicates that it generated $2.16 in revenue for every dollar of working capital invested. Subsequently, the ratio decreased in Q2 and Q3 2022, indicating a temporary decline in efficiency. However, in Q4 2022, the ratio recovered to 2.01, suggesting a more optimal utilization of working capital.
Throughout 2023, the working capital turnover ratio has remained above 1.80, indicating that the company has consistently been generating more revenue relative to its working capital investment. In Q2 2023, there was a slight peak with a ratio of 1.97, demonstrating a temporary improvement in efficiency. Q4 2023 saw a ratio of 2.00, which is slightly below the peak but still reflective of the company's ability to effectively convert working capital into revenue.
Overall, Harley-Davidson, Inc. has shown moderate fluctuations in its working capital turnover ratio over the past eight quarters, but the ratios have generally remained at healthy levels, indicating efficient management of working capital to generate revenue.
Peer comparison
Dec 31, 2023