Innospec Inc (IOSP)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,948,800 | 1,964,800 | 2,013,700 | 2,000,900 | 1,963,700 | 1,866,200 | 1,729,300 | 1,616,200 | 1,483,400 | 1,380,200 | 1,269,200 | 1,159,600 | 1,192,200 | 1,272,800 | 1,379,600 | 1,497,100 | 1,513,000 | 1,511,400 | 1,502,600 | 1,498,300 |
| Total current assets | US$ in thousands | 885,700 | 863,700 | 854,500 | 875,000 | 872,600 | 846,400 | 799,300 | 778,600 | 728,100 | 683,000 | 643,100 | 607,600 | 566,200 | 528,800 | 532,900 | 626,700 | 630,300 | 673,300 | 650,500 | 683,600 |
| Total current liabilities | US$ in thousands | 371,500 | 344,200 | 364,900 | 381,600 | 405,800 | 381,400 | 369,200 | 352,300 | 336,600 | 308,300 | 291,000 | 274,300 | 252,400 | 229,800 | 219,200 | 266,100 | 303,500 | 296,700 | 303,700 | 300,000 |
| Working capital turnover | 3.79 | 3.78 | 4.11 | 4.06 | 4.21 | 4.01 | 4.02 | 3.79 | 3.79 | 3.68 | 3.60 | 3.48 | 3.80 | 4.26 | 4.40 | 4.15 | 4.63 | 4.01 | 4.33 | 3.91 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,948,800K ÷ ($885,700K – $371,500K)
= 3.79
Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. Innospec Inc's working capital turnover has shown some fluctuations over the past eight quarters. The ratio ranged from 3.79 to 4.21 during this period.
In Q4 2023, the working capital turnover was 3.79, which was slightly lower than in the previous quarter. This suggests that the company generated $3.79 in revenue for every $1 of working capital invested in the business during that quarter.
Overall, the working capital turnover for Innospec Inc has been relatively consistent, hovering around the 4.0 mark. A higher turnover ratio indicates better efficiency in managing working capital. The company's working capital turnover has generally been healthy, reflecting efficient utilization of its current assets and liabilities to support sales activities.
It is important for the company to maintain an optimal level of working capital turnover to ensure sufficient liquidity while maximizing revenue generation. Continuous monitoring and improvement in working capital turnover can help enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2023