IDACORP Inc (IDA)

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 1,821,734 1,835,556 1,817,935 1,783,615 1,766,356 1,777,361 1,784,467 1,729,352 1,643,981 1,556,035 1,484,967 1,486,318 1,458,084 1,438,766 1,417,083 1,375,775 1,350,729 1,327,883 1,288,942 1,287,071
Total current assets US$ in thousands 988,455 1,033,360 814,439 780,281 1,004,050 1,038,150 733,634 990,933 693,653 659,668 693,344 611,898 595,873 678,185 672,979 593,892 642,401 684,771 828,041 472,942
Total current liabilities US$ in thousands 700,801 606,184 525,632 505,376 634,076 488,930 468,338 532,570 548,565 475,422 448,980 327,578 325,624 342,780 331,141 261,872 287,571 302,771 447,168 247,854
Working capital turnover 6.33 4.30 6.29 6.49 4.77 3.24 6.73 3.77 11.33 8.45 6.08 5.23 5.40 4.29 4.15 4.14 3.81 3.48 3.38 5.72

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,821,734K ÷ ($988,455K – $700,801K)
= 6.33

The working capital turnover ratio of IDACORP Inc has varied over the reported periods, indicating the company's efficiency in utilizing its working capital to generate revenue. The working capital turnover ratio measures how many times a company's working capital is used to generate sales during a given period.

IDACORP Inc's working capital turnover ratio ranged from 3.24 to 11.33 over the reported periods. A higher ratio suggests that the company is efficiently using its working capital to generate sales, while a lower ratio may indicate inefficiencies or excess working capital.

The trend in IDACORP Inc's working capital turnover ratio shows fluctuations but generally shows an increasing trend from September 2021 to December 2024, reaching its peak at 11.33 in December 2022. This increase may indicate improved efficiency in utilizing working capital to drive sales during that period.

However, the ratio decreased in the following periods, reaching a low of 3.24 in September 2023, before gradually improving in subsequent periods. Fluctuations in the ratio could be attributed to various factors such as changes in operating efficiency, seasonal variations, or shifts in the company's business operations.

Overall, a higher working capital turnover ratio is generally favorable as it indicates that the company is effectively managing its working capital to support its sales activities. Analyzing the trend of this ratio over time can provide insights into the company's operational efficiency and financial performance.