IDEX Corporation (IEX)
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 | 3,273,900 | 3,295,700 | 3,326,300 | 3,276,200 | 3,181,900 | 3,086,000 | 2,974,000 | 2,863,900 | 2,764,800 | 2,664,822 | 2,533,935 | 2,409,184 | 2,351,646 | 2,342,821 | 2,385,954 | 2,466,804 | 2,494,573 | 2,502,670 | 2,501,312 | 2,493,573 |
| Total current assets | US$ in thousands | 1,446,300 | 1,518,200 | 1,487,900 | 1,524,500 | 1,399,300 | 1,635,000 | 1,551,300 | 1,681,300 | 1,678,000 | 1,583,360 | 1,493,690 | 1,651,140 | 1,657,200 | 1,520,750 | 1,397,250 | 1,289,070 | 1,261,440 | 1,190,620 | 1,216,880 | 1,129,230 |
| Total current liabilities | US$ in thousands | 500,300 | 487,500 | 486,600 | 491,900 | 543,600 | 506,500 | 513,800 | 468,300 | 480,000 | 469,108 | 450,359 | 377,513 | 399,000 | 409,699 | 401,307 | 366,890 | 357,877 | 370,670 | 361,791 | 339,247 |
| Working capital turnover | 3.46 | 3.20 | 3.32 | 3.17 | 3.72 | 2.73 | 2.87 | 2.36 | 2.31 | 2.39 | 2.43 | 1.89 | 1.87 | 2.11 | 2.40 | 2.67 | 2.76 | 3.05 | 2.93 | 3.16 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,273,900K ÷ ($1,446,300K – $500,300K)
= 3.46
Idex Corporation's working capital turnover has shown fluctuation over the past eight quarters, ranging from 2.36 to 3.72. In Q4 2023, the working capital turnover ratio stood at 3.46, indicating that the company generated $3.46 in net sales for every dollar of working capital invested. This demonstrates an improvement from the previous quarter's ratio of 3.20.
The increase in the working capital turnover ratio suggests that Idex Corporation has been more efficient in utilizing its working capital to generate sales revenue in Q4 2023. This improvement could stem from better inventory management, effective accounts receivable collection, or tighter control over accounts payable.
While the recent performance is promising, it is essential for the company to maintain or further enhance its working capital turnover ratio to ensure continued operational efficiency and financial health. Monitoring this ratio over time will provide insights into Idex Corporation's liquidity management and its ability to convert working capital into revenue effectively.
Peer comparison
Dec 31, 2023