Hexcel Corporation (HXL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,903,000 | 1,758,000 | 1,541,500 | 1,286,400 | 1,460,600 |
| Total current assets | US$ in thousands | 781,500 | 864,200 | 734,400 | 616,300 | 535,900 |
| Total current liabilities | US$ in thousands | 353,500 | 315,900 | 329,800 | 247,600 | 183,100 |
| Working capital turnover | 4.45 | 3.21 | 3.81 | 3.49 | 4.14 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,903,000K ÷ ($781,500K – $353,500K)
= 4.45
The working capital turnover for Hexcel Corporation has shown fluctuations over the past five years, ranging from a low of 3.21 in December 31, 2023 to a high of 4.45 in December 31, 2024. This ratio indicates the efficiency with which the company manages its working capital to generate sales revenue.
A higher working capital turnover ratio signifies that Hexcel Corporation is utilizing its working capital more effectively to support its operations and sales activities. However, it's important to note that a very high ratio could also indicate a potential risk of stockouts or inadequate investment in current assets.
On the other hand, a lower working capital turnover ratio may suggest inefficiencies in managing working capital, such as excess inventory or slow collection of receivables.
Overall, the trend in Hexcel Corporation's working capital turnover indicates a fluctuating but generally acceptable level of efficiency in managing its working capital in relation to its sales turnover.
Peer comparison
Dec 31, 2024