Ingredion Incorporated (INGR)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,160,000 | 7,946,000 | 6,894,000 | 5,966,000 | 6,200,000 |
| Total current assets | US$ in thousands | 3,399,000 | 3,309,000 | 2,697,000 | 2,647,000 | 2,160,000 |
| Total current liabilities | US$ in thousands | 1,772,000 | 1,882,000 | 1,512,000 | 1,458,000 | 967,000 |
| Working capital turnover | 5.02 | 5.57 | 5.82 | 5.02 | 5.20 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,160,000K ÷ ($3,399,000K – $1,772,000K)
= 5.02
Ingredion Inc's working capital turnover has exhibited a declining trend over the past five years, decreasing from 5.20 in 2019 to 5.02 in 2023. This indicates that the company is generating $5.02 in sales for every dollar of working capital invested in the business as of December 31, 2023.
Although the working capital turnover ratio has slightly decreased over the years, the company is still efficiently utilizing its working capital to generate sales revenue. A high working capital turnover ratio generally signifies that the company is managing its working capital efficiently, minimizing excess inventory and receivables while maximizing sales.
It is essential for Ingredion Inc to continue monitoring and managing its working capital effectively to support its operations and growth strategies in the future, ensuring optimal utilization of resources to drive sales and profitability.
Peer comparison
Dec 31, 2023