Howmet Aerospace Inc (HWM)
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 | 7,430,000 | 7,270,000 | 7,093,000 | 6,861,000 | 6,640,000 | 6,422,000 | 6,197,000 | 5,942,000 | 5,663,000 | 5,435,000 | 5,285,000 | 5,087,000 | 4,972,000 | 4,925,000 | 4,776,000 | 4,834,000 | 6,834,000 | 8,997,000 | 11,422,000 | 13,860,000 |
| Total current assets | US$ in thousands | 3,362,000 | 3,391,000 | 3,603,000 | 3,340,000 | 3,316,000 | 3,111,000 | 3,128,000 | 3,057,000 | 3,143,000 | 2,846,000 | 2,837,000 | 2,782,000 | 2,737,000 | 2,820,000 | 2,799,000 | 3,328,000 | 3,672,000 | 3,600,000 | 3,702,000 | 6,948,000 |
| Total current liabilities | US$ in thousands | 1,549,000 | 1,517,000 | 2,358,000 | 1,698,000 | 1,784,000 | 1,454,000 | 1,410,000 | 1,403,000 | 1,482,000 | 1,381,000 | 1,322,000 | 1,255,000 | 1,253,000 | 1,208,000 | 1,227,000 | 1,680,000 | 1,660,000 | 1,577,000 | 1,658,000 | 4,107,000 |
| Working capital turnover | 4.10 | 3.88 | 5.70 | 4.18 | 4.33 | 3.88 | 3.61 | 3.59 | 3.41 | 3.71 | 3.49 | 3.33 | 3.35 | 3.06 | 3.04 | 2.93 | 3.40 | 4.45 | 5.59 | 4.88 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,430,000K ÷ ($3,362,000K – $1,549,000K)
= 4.10
The working capital turnover ratio for Howmet Aerospace Inc has shown some fluctuations over the past few years.
From March 31, 2020, to June 30, 2020, there was an increase in the ratio from 4.88 to 5.59, indicating that the company was able to generate more revenue relative to its working capital during that period.
However, from June 30, 2020, to December 31, 2021, the ratio steadily declined to 3.40. This suggests that Howmet Aerospace may have become less efficient in utilizing its working capital to generate sales during this period.
Subsequently, there was a slight improvement in the ratio from March 31, 2022, to June 30, 2024, reaching a peak of 5.70. This indicates an increase in revenue generated from working capital investment during this time frame.
Overall, the working capital turnover ratio for Howmet Aerospace Inc has fluctuated but generally remained within the range of 3 to 5.70 over the analyzed periods. Further investigation into the company's working capital management practices and operational efficiency may provide insights into the factors driving these fluctuations.
Peer comparison
Dec 31, 2024