Insteel Industries Inc (IIIN)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 529,219 | 549,135 | 569,054 | 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 |
| Total current assets | US$ in thousands | 267,294 | 257,124 | 239,699 | 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 |
| Total current liabilities | US$ in thousands | 47,034 | 44,715 | 33,384 | 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 |
| Working capital turnover | 2.40 | 2.59 | 2.76 | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $529,219K ÷ ($267,294K – $47,034K)
= 2.40
The working capital turnover of Insteel Industries Inc has fluctuated over the past several quarters, indicating varying efficiencies in utilizing its working capital. The trend shows an overall increase in working capital turnover from 3.29 in December 2019 to 2.40 in September 2024. This implies that the company generated $2.40 in revenue for every $1 of working capital invested during the most recent period.
A working capital turnover ratio above 1 suggests that the company is efficiently using its working capital to generate sales. Insteel's working capital turnover has generally been above 1, which is a positive sign. The peak of 4.04 in December 2020 indicates a particularly efficient use of working capital at that time.
It is important for Insteel Industries to maintain a healthy working capital turnover ratio to ensure that its operations are running smoothly. The fluctuations in the ratio signal changes in the company's ability to generate sales relative to its investment in working capital. This metric provides insight into the company's liquidity and operational efficiency in managing its current assets and liabilities.
Peer comparison
Sep 30, 2024