Innospec Inc (IOSP)
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 | 1,845,600 | 1,873,500 | 1,894,100 | 1,939,500 | 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 |
| Total current assets | US$ in thousands | 956,600 | 965,600 | 876,800 | 912,900 | 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 |
| Total current liabilities | US$ in thousands | 371,400 | 373,100 | 332,800 | 364,900 | 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 |
| Working capital turnover | 3.15 | 3.16 | 3.48 | 3.54 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,845,600K ÷ ($956,600K – $371,400K)
= 3.15
The working capital turnover ratio of Innospec Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
The ratio started at 4.15 on March 31, 2020, increased to 4.40 by June 30, 2020, and maintained relatively stable levels around 4.20 until December 31, 2021. However, it decreased to 3.48 on March 31, 2021.
From June 30, 2021, the ratio showed some improvement, reaching 4.02 by June 30, 2022, and demonstrated a peak of 4.21 on December 31, 2022. The ratio remained above 4 for a few quarters but started to decline again from March 31, 2023, to December 31, 2024, ending at 3.15.
Overall, the working capital turnover ratio of Innospec Inc has experienced fluctuations during the period, with some periods of improvement followed by declines. It is essential for the company to maintain a healthy working capital turnover ratio to ensure efficient utilization of its working capital resources.
Peer comparison
Dec 31, 2024