International Seaways Inc (INSW)

Working capital turnover

Dec 31, 2024 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
Revenue (ttm) US$ in thousands 951,613 1,007,734 829,787 864,581 877,310 964,733 1,154,319 1,050,313 864,665 621,178 469,165 377,539 322,813 284,846 299,913 343,067 421,648 488,967 460,362 389,647
Total current assets US$ in thousands 376,323 372,270 434,615 490,071 464,980 473,875 559,681 562,600 642,615 509,550 435,003 246,488 224,499 228,781 180,074 221,400 256,834 220,245 242,232 215,596
Total current liabilities US$ in thousands 130,935 103,292 111,733 179,750 195,574 187,337 247,281 227,478 257,389 220,881 208,902 245,274 234,611 280,937 200,720 97,727 108,896 102,822 130,545 132,629
Working capital turnover 3.88 3.75 2.57 2.79 3.26 3.37 3.70 3.13 2.24 2.15 2.08 310.99 — — — 2.77 2.85 4.16 4.12 4.70

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $951,613K ÷ ($376,323K – $130,935K)
= 3.88

The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.

Based on the provided data for International Seaways Inc, the working capital turnover fluctuated over the examined periods. From March 31, 2020, to December 31, 2020, the ratio decreased from 4.70 to 2.85. This sharp decline suggests a potential inefficiency in utilizing working capital during this period.

Subsequently, the ratio remained relatively stable between March 31, 2021, and June 30, 2022, ranging from 2.77 to 2.08. This indicates a consistent level of working capital turnover over these quarters.

A notable increase in the working capital turnover ratio occurred during the period from March 31, 2022, to December 31, 2024. The ratio rose steadily from 310.99 to 3.88 by the end of December 31, 2024. Such a significant spike in the ratio in March 31, 2022, raises a red flag and suggests a potential data anomaly.

Overall, it is important for International Seaways Inc to closely monitor its working capital turnover ratio to ensure efficient management of working capital for revenue generation in the future.