ITT Inc (ITT)
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 | 3,630,700 | 3,530,800 | 3,467,700 | 3,395,700 | 3,283,000 | 3,228,500 | 3,160,000 | 3,059,400 | 2,987,700 | 2,898,500 | 2,834,500 | 2,792,800 | 2,765,000 | 2,788,200 | 2,689,800 | 2,512,900 | 2,477,800 | 2,488,300 | 2,609,000 | 2,814,200 |
| Total current assets | US$ in thousands | 1,864,700 | 2,010,800 | 1,925,900 | 1,907,700 | 1,857,700 | 1,781,500 | 1,829,200 | 1,798,300 | 1,836,800 | 1,785,600 | 1,776,400 | 1,904,500 | 1,722,100 | 1,641,800 | 1,627,200 | 1,892,000 | 1,917,300 | 1,822,800 | 1,826,800 | 1,948,200 |
| Total current liabilities | US$ in thousands | 1,333,200 | 1,274,700 | 1,241,400 | 1,197,000 | 1,037,800 | 1,044,000 | 1,174,100 | 1,121,400 | 1,185,500 | 1,269,100 | 1,303,400 | 1,242,300 | 928,300 | 899,200 | 900,000 | 826,500 | 871,000 | 866,000 | 947,600 | 1,107,000 |
| Working capital turnover | 6.83 | 4.80 | 5.07 | 4.78 | 4.00 | 4.38 | 4.82 | 4.52 | 4.59 | 5.61 | 5.99 | 4.22 | 3.48 | 3.75 | 3.70 | 2.36 | 2.37 | 2.60 | 2.97 | 3.35 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,630,700K ÷ ($1,864,700K – $1,333,200K)
= 6.83
ITT Inc's working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales. From March 31, 2020, to December 31, 2024, the working capital turnover has shown a fluctuating trend, ranging from a low of 2.37 to a high of 6.83.
The trend shows an initial decrease in the working capital turnover ratio, indicating a potential inefficiency in utilizing working capital during the initial periods. However, starting from June 30, 2021, the ratio began to improve steadily, reaching a peak of 6.83 by December 31, 2024.
The significant improvement in the working capital turnover ratio from June 30, 2022, to December 31, 2024, suggests that ITT Inc has become more efficient in managing its working capital to support sales growth. This improvement may be attributed to better inventory management, receivables collection, or payment of liabilities.
Overall, the increasing trend in the working capital turnover ratio reflects positively on ITT Inc's ability to leverage its working capital efficiently to drive sales and operational performance.
Peer comparison
Dec 31, 2024