Hertz Global Holdings Inc (HTZ)
Working capital turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,049,000 | 9,193,000 | 9,320,000 | 9,404,000 | 9,371,000 | 9,222,000 | 9,015,000 | 8,922,000 | 8,685,000 | 8,599,000 | 8,329,000 | 7,858,000 | 7,337,000 | 6,623,000 | 5,665,000 | 4,624,000 | 5,258,000 | 6,349,000 | 7,917,000 | 9,596,000 |
| Total current assets | US$ in thousands | 2,338,000 | 2,245,000 | 3,015,000 | 2,909,000 | 2,397,000 | 3,297,000 | 3,489,000 | 3,256,000 | 3,547,000 | 3,494,000 | 3,632,000 | 4,253,000 | 4,426,000 | 4,998,000 | 4,903,000 | 4,019,000 | 4,468,000 | 3,727,000 | 4,440,000 | 4,625,000 |
| Total current liabilities | US$ in thousands | 642,000 | 624,000 | 2,134,000 | 2,194,000 | 3,096,000 | 2,082,000 | 2,635,000 | 1,819,000 | 1,738,000 | 1,903,000 | 2,176,000 | 1,810,000 | 1,592,000 | 1,731,000 | 1,969,000 | 2,266,000 | 2,979,000 | 1,514,000 | 1,580,000 | 2,854,000 |
| Working capital turnover | 5.34 | 5.67 | 10.58 | 13.15 | — | 7.59 | 10.56 | 6.21 | 4.80 | 5.40 | 5.72 | 3.22 | 2.59 | 2.03 | 1.93 | 2.64 | 3.53 | 2.87 | 2.77 | 5.42 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,049,000K ÷ ($2,338,000K – $642,000K)
= 5.34
Working capital turnover is a financial ratio that measures how efficiently a company is able to generate revenue from its working capital. The working capital turnover for Hertz Global Holdings Inc has fluctuated over the given period, ranging from 1.93 to 13.15.
The working capital turnover was highest at 13.15 on March 31, 2024, indicating that the company generated $13.15 of revenue for every dollar of working capital invested during that period. This suggests strong efficiency in utilizing its working capital to drive sales.
On the other hand, the lowest working capital turnover of 1.93 was observed on June 30, 2021. This low ratio may indicate inefficiencies in managing the working capital to generate revenue.
Overall, the trend in the working capital turnover for Hertz Global Holdings Inc shows some volatility, with fluctuations in the ratios over time. It would be important for the company to analyze the factors contributing to these fluctuations and work towards maintaining a more consistent and efficient use of its working capital to drive revenue generation.
Peer comparison
Dec 31, 2024