Hexcel Corporation (HXL)
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 | 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 | 2,320,800 | 2,317,500 | 2,285,900 | 2,227,600 |
| Total current assets | US$ in thousands | 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 | 704,900 | 771,600 | 798,100 | 782,300 |
| Total current liabilities | US$ in thousands | 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 | 322,600 | 347,000 | 359,700 | 349,900 |
| Working capital turnover | 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 | 6.07 | 5.46 | 5.21 | 5.15 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,758,000K ÷ ($864,200K – $315,900K)
= 3.21
Hexcel Corp.'s working capital turnover has shown fluctuations over the past eight quarters. The highest working capital turnover ratio was observed in Q4 2022 at 3.90, while the lowest was in Q1 2023 at 3.18. Despite the variability, the overall trend indicates that the company is efficiently managing its working capital to generate sales revenue. A working capital turnover ratio above 1 indicates that Hexcel Corp. is effectively using its working capital to support its operations and generate revenue. The average working capital turnover ratio over the eight quarters is 3.45, suggesting that the company is efficiently utilizing its working capital resources. It is important for investors and analysts to continue monitoring this ratio to ensure the company maintains its efficiency in managing its working capital.
Peer comparison
Dec 31, 2023