Howmet Aerospace Inc (HWM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,430,000 | 6,640,000 | 5,663,000 | 4,972,000 | 5,259,000 |
| Total current assets | US$ in thousands | 3,362,000 | 3,316,000 | 3,143,000 | 2,737,000 | 3,672,000 |
| Total current liabilities | US$ in thousands | 1,549,000 | 1,784,000 | 1,482,000 | 1,253,000 | 1,660,000 |
| Working capital turnover | 4.10 | 4.33 | 3.41 | 3.35 | 2.61 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,430,000K ÷ ($3,362,000K – $1,549,000K)
= 4.10
The working capital turnover of Howmet Aerospace Inc has shown a positive trend over the past five years, starting at 2.61 in December 31, 2020, and consistently increasing to reach 4.10 by December 31, 2024. This indicates that the company has become more efficient in managing its working capital to generate revenue during this period. The upward trend suggests that Howmet Aerospace has been able to effectively utilize its current assets and liabilities to support its operations and sales growth. Overall, the increasing working capital turnover ratio reflects a healthy financial management strategy and operational efficiency within the company.
Peer comparison
Dec 31, 2024