IDEX Corporation (IEX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,268,800 | 3,273,900 | 3,181,900 | 2,764,800 | 2,351,650 |
| Total current assets | US$ in thousands | 1,592,700 | 1,446,300 | 1,399,300 | 1,678,000 | 1,657,230 |
| Total current liabilities | US$ in thousands | 629,700 | 500,300 | 543,600 | 480,000 | 399,058 |
| Working capital turnover | 3.39 | 3.46 | 3.72 | 2.31 | 1.87 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,268,800K ÷ ($1,592,700K – $629,700K)
= 3.39
Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is more effective in utilizing its working capital to support its operations.
For IDEX Corporation, the working capital turnover has shown a positive trend over the past five years. Starting at 1.87 in December 2020, the ratio increased steadily to 3.72 by December 2022, indicating a significant improvement in the company's working capital management efficiency.
However, there was a slight decrease in the ratio to 3.46 by December 2023, followed by a further decrease to 3.39 by December 2024. Despite the declines in the last two years, the working capital turnover ratios for those years are still considerably higher compared to the initial ratio in December 2020.
Overall, the trend suggests that IDEX Corporation has been successful in optimizing its working capital to support its sales growth and operational activities. The company's ability to maintain a relatively high working capital turnover ratio indicates efficient management of working capital resources, which is essential for sustaining business operations and generating profits.
Peer comparison
Dec 31, 2024