Howmet Aerospace Inc (HWM)
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 | 6,433,000 | 6,183,000 | 5,969,000 | 5,711,000 | 5,433,000 | 5,204,000 | 4,929,000 | 4,699,000 | 4,565,000 | 4,582,000 | 4,540,000 | 4,551,000 | 6,523,000 | 8,686,000 | 11,183,000 | 13,758,000 | 14,192,000 | 14,263,000 | 14,228,000 | 14,110,000 |
| Total current assets | US$ in thousands | 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 | 5,843,000 | 5,908,000 | 6,018,000 | 6,053,000 |
| Total current liabilities | US$ in thousands | 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 | 4,125,000 | 4,460,000 | 3,621,000 | 3,659,000 |
| Working capital turnover | 4.20 | 3.73 | 3.47 | 3.45 | 3.27 | 3.55 | 3.25 | 3.08 | 3.08 | 2.84 | 2.89 | 2.76 | 3.24 | 4.29 | 5.47 | 4.84 | 8.26 | 9.85 | 5.94 | 5.89 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,433,000K ÷ ($3,316,000K – $1,784,000K)
= 4.20
The working capital turnover ratio of Howmet Aerospace Inc has been fluctuating over the past eight quarters, with values ranging from 3.33 to 4.33. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio generally suggests better efficiency in managing working capital.
In Q4 2023, the working capital turnover ratio reached its highest point at 4.33, which indicates that the company generated $4.33 in sales for every $1 of working capital invested. This improvement in efficiency compared to the previous quarters may signify improved management of inventory, receivables, and payables.
Overall, despite some fluctuations, the working capital turnover ratio of Howmet Aerospace Inc has generally shown a positive trend, reflecting effective utilization of working capital resources in generating sales revenue.
Peer comparison
Dec 31, 2023