Insteel Industries Inc (IIIN)
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 | 600,711 | 649,214 | 702,408 | 763,864 | 817,999 | 826,223 | 790,215 | 723,780 | 649,569 | 590,694 | 556,516 | 517,734 | 493,592 | 471,587 | 446,089 | 450,346 | 447,416 | 454,662 | 464,253 | 464,751 |
| Total current assets | US$ in thousands | 231,817 | 298,853 | 297,635 | 287,879 | 288,211 | 335,332 | 343,665 | 282,804 | 226,804 | 246,906 | 227,813 | 192,242 | 168,883 | 197,038 | 196,786 | 176,272 | 174,241 | 160,584 | 169,727 | 174,556 |
| Total current liabilities | US$ in thousands | 33,437 | 46,155 | 51,059 | 45,089 | 44,913 | 62,596 | 95,036 | 73,816 | 62,574 | 68,849 | 75,629 | 59,193 | 46,773 | 53,678 | 59,730 | 48,125 | 40,282 | 28,413 | 37,707 | 41,115 |
| Working capital turnover | 3.03 | 2.57 | 2.85 | 3.15 | 3.36 | 3.03 | 3.18 | 3.46 | 3.96 | 3.32 | 3.66 | 3.89 | 4.04 | 3.29 | 3.25 | 3.51 | 3.34 | 3.44 | 3.52 | 3.48 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $600,711K ÷ ($231,817K – $33,437K)
= 3.03
The working capital turnover for Insteel Industries Inc has exhibited some fluctuations over the past few years, ranging from 2.57 to 4.04. It measures how efficiently the company is utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support sales growth.
In general, Insteel Industries Inc has maintained a healthy working capital turnover, with the ratio consistently above 3. This suggests that the company is efficiently utilizing its current assets and liabilities to support its operations and sales activities.
However, there are some fluctuations in the ratio over the periods analyzed. The working capital turnover peaked at 4.04 in December 2020 and then slightly decreased over the subsequent periods. This could indicate changes in the company's management of its working capital efficiency during those periods.
Overall, a consistent working capital turnover ratio above 3 for Insteel Industries Inc reflects the company's ability to effectively manage its working capital and generate sales, which is a positive indicator for its operational efficiency.
Peer comparison
Dec 31, 2023