IDACORP Inc (IDA)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,557,810	1,482,910	1,303,710	1,209,720	1,212,350
Total current assets	US$ in thousands	1,004,050	693,653	595,873	642,401	565,146
Total current liabilities	US$ in thousands	634,076	548,565	325,624	287,571	374,859
Working capital turnover		4.21	10.22	4.82	3.41	6.37

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,557,810K ÷ ($1,004,050K – $634,076K)
= 4.21

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.

Looking at Idacorp, Inc.'s working capital turnover over the past five years, we observe fluctuations in the ratio. In 2023, the ratio dropped to 4.77 from 11.33 in 2022, indicating a decrease in the company's efficiency in utilizing its working capital to generate sales. This could suggest potential challenges in managing short-term assets and liabilities effectively.

Comparing the 2023 ratio to 2021 and 2020, Idacorp, Inc. had a lower working capital turnover which could indicate that the company may have experienced difficulties in efficiently converting its working capital into sales during the most recent period.

Furthermore, when compared to the 2019 ratio, which stood at 7.08, the significant decline in 2023 suggests a notable decrease in working capital efficiency.

Overall, based on the trend of decreasing working capital turnover from 2022 to 2023, Idacorp, Inc. may need to reassess its working capital management strategies to improve efficiency and optimize the utilization of its working capital to drive sales.