Itron Inc (ITRI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,167,720 | 1,788,240 | 1,881,840 | 2,072,330 | 2,450,020 |
| Total current assets | US$ in thousands | 1,049,440 | 829,584 | 749,929 | 930,262 | 997,251 |
| Total current liabilities | US$ in thousands | 537,236 | 498,572 | 501,344 | 549,899 | 671,391 |
| Working capital turnover | 4.23 | 5.40 | 7.57 | 5.45 | 7.52 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,167,720K ÷ ($1,049,440K – $537,236K)
= 4.23
Over the past five years, Itron Inc.'s working capital turnover has shown some fluctuations. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenues. A higher turnover ratio indicates that the company is effectively managing its working capital to support its operations.
Itron's working capital turnover has decreased from 7.68 in 2019 to 4.24 in 2023, showing a declining trend in recent years. This decline may suggest that the company's efficiency in utilizing its working capital to generate revenue has decreased over time. A lower working capital turnover may indicate potential issues with inventory management, accounts receivable collection, or accounts payable management.
While a high working capital turnover ratio is generally favorable as it indicates efficient use of resources, it is important to consider the industry benchmarks and the company's specific business model when evaluating the significance of these ratios. Further analysis of Itron's financial statements and business operations would be needed to understand the reasons behind the fluctuations in its working capital turnover ratio over the years and to assess the impact on the company's overall financial performance and operational efficiency.
Peer comparison
Dec 31, 2023