Haverty Furniture Companies Inc (HVT)
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 | 867,572 | 935,649 | 988,559 | 1,034,657 | 1,047,913 | 1,033,296 | 1,018,756 | 1,015,444 | 1,012,971 | 988,370 | 945,498 | 805,218 | 748,317 | 720,815 | 712,863 | 795,327 | 803,272 | 798,403 | 799,078 | 805,167 |
| Total current assets | US$ in thousands | 251,593 | 270,931 | 257,472 | 272,320 | 276,253 | 310,087 | 309,405 | 313,130 | 309,057 | 378,521 | 380,589 | 342,700 | 316,244 | 330,976 | 283,007 | 220,183 | 204,523 | 214,613 | 193,841 | 207,758 |
| Total current liabilities | US$ in thousands | 138,264 | 151,406 | 144,475 | 138,566 | 154,432 | 192,746 | 208,516 | 213,742 | 210,377 | 245,800 | 234,830 | 214,928 | 204,041 | 202,069 | 157,363 | 146,753 | 127,016 | 132,793 | 112,094 | 112,448 |
| Working capital turnover | 7.66 | 7.83 | 8.75 | 7.74 | 8.60 | 8.81 | 10.10 | 10.22 | 10.27 | 7.45 | 6.49 | 6.30 | 6.67 | 5.59 | 5.67 | 10.83 | 10.36 | 9.76 | 9.78 | 8.45 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $867,572K ÷ ($251,593K – $138,264K)
= 7.66
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing the company's current assets to generate sales.
In the case of Haverty Furniture Cos., Inc., the working capital turnover has shown some fluctuations over the past eight quarters. The ratio decreased from 8.80 in Q3 2022 to 7.61 in Q4 2023, indicating a decline in the efficiency of using working capital to generate sales revenue.
However, it is important to note that the ratio has mostly remained above 7.00, indicating a relatively efficient utilization of working capital. The peak ratio was seen in Q2 2022 at 10.10, suggesting a significant improvement in efficiency during that period.
Overall, despite some fluctuations, Haverty Furniture Cos., Inc. has generally maintained a healthy level of efficiency in utilizing its working capital to generate sales revenue over the analyzed periods. It would be beneficial for the company to monitor and potentially address any significant declines in the ratio to ensure optimal management of working capital resources.
Peer comparison
Dec 31, 2023