International Flavors & Fragrances Inc (IFF)
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 | 11,022,000 | 11,168,000 | 11,438,000 | 11,857,000 | 12,104,000 | 12,324,000 | 12,342,000 | 12,122,000 | 11,368,000 | 9,645,100 | 7,879,920 | 6,034,230 | 4,948,650 | 4,856,730 | 4,891,250 | 5,016,510 | 4,999,490 | 8,882,710 | 8,522,918 | 8,151,364 |
| Total current assets | US$ in thousands | 6,293,000 | 6,391,000 | 6,436,000 | 7,442,000 | 7,432,000 | 6,494,000 | 7,730,000 | 7,507,000 | 6,987,000 | 7,132,000 | 6,297,000 | 6,174,000 | 3,060,000 | 2,946,200 | 3,012,580 | 2,818,290 | 2,942,540 | 2,898,560 | 2,990,030 | 2,925,820 |
| Total current liabilities | US$ in thousands | 3,758,000 | 3,683,000 | 3,932,000 | 4,874,000 | 3,728,000 | 3,626,000 | 4,720,000 | 4,032,000 | 3,633,000 | 3,579,000 | 3,227,000 | 3,261,000 | 1,904,000 | 1,616,260 | 1,344,170 | 1,427,000 | 1,552,190 | 1,412,450 | 1,149,530 | 1,144,130 |
| Working capital turnover | 4.35 | 4.12 | 4.57 | 4.62 | 3.27 | 4.30 | 4.10 | 3.49 | 3.39 | 2.71 | 2.57 | 2.07 | 4.28 | 3.65 | 2.93 | 3.61 | 3.60 | 5.98 | 4.63 | 4.58 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,022,000K ÷ ($6,293,000K – $3,758,000K)
= 4.35
International Flavors & Fragrances Inc.'s working capital turnover has been showing a fluctuating trend over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.
In Q4 2023, the working capital turnover ratio was 4.53, which was higher than the previous quarter (Q3 2023) at 4.29. This suggests that the company had improved its efficiency in managing working capital to generate sales in the most recent quarter.
Looking at previous quarters, the working capital turnover ratio has varied, with Q2 2023 being the highest at 4.74 and Q1 2023 following closely at 4.77. This indicates that International Flavors & Fragrances Inc. was managing its working capital efficiently in those quarters as well.
Comparing year-over-year performance, there has been a significant improvement in working capital turnover in Q4 2023 compared to the same period in 2022, where the ratio was lower at 3.36. This shows that the company has made strides in utilizing its working capital more effectively to drive sales growth.
Overall, International Flavors & Fragrances Inc. has demonstrated a variable but generally improving trend in its working capital turnover ratio, highlighting its efforts to optimize working capital management for better operational efficiency and revenue generation.
Peer comparison
Dec 31, 2023