Innovex International, Inc (INVX)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	660,803	424,060	467,189	294,841	364,973
Total current assets	US$ in thousands	641,391	719,717	282,387	192,911	863,193
Total current liabilities	US$ in thousands	162,658	117,703	85,020	69,571	85,512
Working capital turnover		1.38	0.70	2.37	2.39	0.47

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $660,803K ÷ ($641,391K – $162,658K)
= 1.38

The working capital turnover ratio for Innovex International, Inc. has exhibited notable fluctuations over the observed period from December 31, 2020, to December 31, 2024.

At the end of 2020, the ratio was relatively low at 0.47, indicating that the company was generating less than half of its sales for each dollar of net working capital, which may suggest either inefficient utilization of working capital or tight liquidity positions.

In 2021, there was a significant increase to 2.39, representing a substantial improvement in the efficiency of working capital utilization. This peak suggests that the company became more effective at generating sales relative to its working capital assets during this period.

The ratio remained relatively stable into 2022, with a slight decrease to 2.37, indicating continued efficiency in managing working capital but with minimal change year-over-year. This stability reflects a consistent operational performance in relation to working capital during this period.

However, at the end of 2023, the working capital turnover ratio declined sharply to 0.70. This decrease could imply a deterioration in the company's efficiency in employing its working capital to generate sales, potentially due to increased working capital levels or declining sales figures.

By the end of 2024, the ratio partially recovered to 1.38 but remained below the 2021 peak. This indicates some improvement in efficiency but still reflects less optimal utilization compared to previous high points.

Overall, the trend within this timeframe suggests that Innovex International, Inc. experienced a period of rising efficiency in 2021, which was followed by relative stability through 2022, and then a decline in 2023. The partial recovery in 2024 hints at ongoing efforts to improve working capital management, although the ratio has yet to reach its earlier peak levels. These fluctuations may be attributable to changes in sales volume, inventory management, accounts receivable and payable dynamics, or broader operational and strategic shifts within the company.