Hexcel Corporation (HXL)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,758,000	1,541,500	1,286,400	1,460,600	2,310,200
Total current assets	US$ in thousands	864,200	734,400	616,300	535,900	704,900
Total current liabilities	US$ in thousands	315,900	329,800	247,600	183,100	322,600
Working capital turnover		3.21	3.81	3.49	4.14	6.04

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,758,000K ÷ ($864,200K – $315,900K)
= 3.21

Hexcel Corp.'s working capital turnover has exhibited a declining trend over the past five years. The ratio has decreased from 6.16 in 2019 to 3.26 in 2023. This suggests that the company is utilizing its working capital less efficiently in recent years. A lower working capital turnover ratio may indicate that the company is taking longer to convert its working capital into revenue-generating activities. Further investigation is required to understand the reasons behind this decline and to assess the potential impact on Hexcel Corp.'s overall financial performance and liquidity position.