Hexcel Corporation (HXL)

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	1,888,400	1,867,500	1,822,700	1,775,500	1,758,000	1,725,300	1,669,300	1,608,300	1,541,500	1,472,400	1,441,000	1,367,900	1,286,400	1,231,100	1,184,000	1,241,000	1,470,000	1,738,500	2,022,800	2,251,900
Total current assets	US$ in thousands	781,500	828,000	807,600	789,700	864,200	765,400	810,100	807,900	734,400	685,200	691,900	684,400	616,300	619,900	619,300	569,400	535,900	575,800	849,600	1,040,300
Total current liabilities	US$ in thousands	353,500	300,000	293,700	288,600	315,900	252,900	276,100	290,100	329,800	283,700	271,200	247,100	247,600	224,900	235,600	219,900	183,100	175,500	219,900	309,900
Working capital turnover		4.41	3.54	3.55	3.54	3.21	3.37	3.13	3.11	3.81	3.67	3.43	3.13	3.49	3.12	3.09	3.55	4.17	4.34	3.21	3.08

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,888,400K ÷ ($781,500K – $353,500K)
= 4.41

The working capital turnover of Hexcel Corporation has shown fluctuations over the reporting periods, ranging from a low of 3.08 to a high of 4.41. This ratio indicates how efficiently the company utilizes its working capital to generate sales. A higher turnover ratio typically suggests that the company is effectively managing its working capital to support its operations and generate revenue.

In the case of Hexcel Corporation, the working capital turnover ratio has generally been within a moderate range, with occasional spikes suggesting improved efficiency in capital utilization. However, there appears to be some variability in the company's ability to efficiently convert working capital into sales across different reporting periods.

Further analysis may be needed to understand the underlying reasons for these fluctuations and to assess the overall effectiveness of Hexcel Corporation's working capital management strategy in driving revenue generation.