International Flavors & Fragrances Inc (IFF)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,484,000 | 11,479,000 | 12,440,000 | 11,656,000 | 5,084,240 |
| Total current assets | US$ in thousands | 7,993,000 | 6,293,000 | 7,432,000 | 6,987,000 | 3,059,800 |
| Total current liabilities | US$ in thousands | 4,333,000 | 3,758,000 | 3,738,000 | 3,633,000 | 1,903,730 |
| Working capital turnover | 3.14 | 4.53 | 3.37 | 3.48 | 4.40 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,484,000K ÷ ($7,993,000K – $4,333,000K)
= 3.14
The working capital turnover ratio for International Flavors & Fragrances Inc has been showing some fluctuations over the past five years. It was 4.40 in December 31, 2020, indicating that the company generated $4.40 in revenue for every dollar of working capital invested.
However, this ratio decreased to 3.48 by December 31, 2021, and further declined to 3.37 by December 31, 2022. This suggests that the company's efficiency in utilizing its working capital to generate sales revenue decreased during these years.
There was a notable improvement in the performance by December 31, 2023, as the working capital turnover ratio increased to 4.53, indicating that the company was able to generate more revenue for each dollar of working capital invested.
Nevertheless, this improvement was short-lived as the ratio dropped to 3.14 by December 31, 2024, signaling a decrease in efficiency in utilizing working capital to generate sales revenue.
In conclusion, the working capital turnover ratio of International Flavors & Fragrances Inc has shown variability over the past five years, with periods of both improvement and decline in efficiency. Further analysis and monitoring of this ratio will be necessary to assess the company's working capital management effectiveness.
Peer comparison
Dec 31, 2024