ITT Inc (ITT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,283,000 | 2,987,700 | 2,765,000 | 2,477,800 | 2,846,400 |
| Total current assets | US$ in thousands | 1,857,700 | 1,836,800 | 1,722,100 | 1,917,300 | 1,736,800 |
| Total current liabilities | US$ in thousands | 1,037,800 | 1,185,500 | 928,300 | 871,000 | 849,700 |
| Working capital turnover | 4.00 | 4.59 | 3.48 | 2.37 | 3.21 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,283,000K ÷ ($1,857,700K – $1,037,800K)
= 4.00
ITT Inc's working capital turnover ratio has shown fluctuations over the past five years. The ratio experienced a significant increase from 2.37 in 2020 to 4.00 in 2023, indicating that the company generated $4.00 of revenue for every dollar of working capital invested in the business during the most recent period. This improvement suggests that ITT Inc has become more efficient in utilizing its working capital to generate sales.
Although there was a slight decrease in the ratio in 2022 compared to the previous year, the overall trend shows an improvement in working capital efficiency. The ratio peaked in 2022 at 4.59, reflecting a particularly strong performance in converting working capital into revenue. This suggests that ITT Inc effectively managed its current assets and liabilities to support its operating activities during that period.
Looking at the historical data, the working capital turnover ratio in 2021 and 2019 was 3.48 and 3.21, respectively, indicating a relatively stable performance in those years. Overall, the increasing trend in the working capital turnover ratio from 2019 to 2023 suggests that ITT Inc has been more successful in leveraging its working capital to drive sales and operational efficiency over the years.
Peer comparison
Dec 31, 2023