International Flavors & Fragrances Inc (IFF)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,002,000 | 12,118,000 | 11,368,000 | 4,948,650 | 4,999,500 |
| Total current assets | US$ in thousands | 6,293,000 | 7,432,000 | 6,987,000 | 3,060,000 | 2,942,540 |
| Total current liabilities | US$ in thousands | 3,758,000 | 3,728,000 | 3,633,000 | 1,904,000 | 1,552,190 |
| Working capital turnover | 4.34 | 3.27 | 3.39 | 4.28 | 3.60 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,002,000K ÷ ($6,293,000K – $3,758,000K)
= 4.34
International Flavors & Fragrances Inc. has exhibited fluctuating trends in its working capital turnover over the past five years, ranging from a low of 3.36 in 2022 to a high of 4.53 in 2023. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of working capital.
The company's working capital turnover ratio improved significantly from 2022 to 2023, suggesting that International Flavors & Fragrances Inc. became more efficient in utilizing its working capital to generate sales during that period. This may be indicative of better inventory management, accounts receivable collection processes, or overall operational efficiency.
Despite some fluctuations, the general trend over the five-year period shows that the company has been able to maintain a relatively healthy working capital turnover ratio, which indicates good operational efficiency and effective management of working capital. This consistent performance suggests that International Flavors & Fragrances Inc. has been able to effectively leverage its working capital to support its revenue generation activities.
Peer comparison
Dec 31, 2023