Innospec Inc (IOSP)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,948,800 | 1,963,700 | 1,483,400 | 1,192,300 | 1,512,300 |
| Total current assets | US$ in thousands | 885,700 | 872,600 | 728,100 | 566,200 | 630,300 |
| Total current liabilities | US$ in thousands | 371,500 | 405,800 | 336,600 | 252,400 | 303,500 |
| Working capital turnover | 3.79 | 4.21 | 3.79 | 3.80 | 4.63 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,948,800K ÷ ($885,700K – $371,500K)
= 3.79
The working capital turnover ratio for Innospec Inc has exhibited some fluctuation over the past five years. It decreased from 4.63 in 2019 to 3.79 in 2021 before increasing to 4.21 in 2022. In 2023, the ratio decreased slightly to 3.79.
A working capital turnover ratio of 3.79 indicates that Innospec Inc generated $3.79 in revenue for every dollar of working capital invested in the business in 2023. This implies that the company is able to efficiently utilize its working capital to generate sales.
Although the ratio has varied, it is important to assess it in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of Innospec's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023