Innospec Inc (IOSP)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,845,600 | 1,948,800 | 1,963,700 | 1,483,400 | 1,192,300 |
| Total current assets | US$ in thousands | 956,600 | 885,700 | 872,600 | 728,100 | 566,200 |
| Total current liabilities | US$ in thousands | 371,400 | 371,500 | 405,800 | 336,600 | 252,400 |
| Working capital turnover | 3.15 | 3.79 | 4.21 | 3.79 | 3.80 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,845,600K ÷ ($956,600K – $371,400K)
= 3.15
The working capital turnover for Innospec Inc has shown some fluctuations over the years, ranging from 3.15 to 4.21. This ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher working capital turnover suggests that the company is effectively managing its working capital to support its sales operations.
In 2022, the working capital turnover increased to 4.21, which may indicate an improvement in the company's efficiency in converting its working capital into sales. However, in 2024, the ratio decreased to 3.15, signaling a potential decline in efficiency in utilizing working capital.
Overall, the company's working capital turnover has remained relatively stable, hovering around the 3.79-3.80 range in most years. It would be advisable for stakeholders to further investigate the factors contributing to the fluctuations observed in this ratio to ensure optimal management of working capital for sustained operational efficiency.
Peer comparison
Dec 31, 2024