ITT Inc (ITT)
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 | 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 | 2,846,400 | 2,805,700 | 2,774,400 | 2,751,300 |
| Total current assets | US$ in thousands | 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 | 1,736,800 | 1,706,300 | 1,702,400 | 1,678,900 |
| Total current liabilities | US$ in thousands | 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 | 849,700 | 888,800 | 892,400 | 860,500 |
| Working capital turnover | 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 | 3.21 | 3.43 | 3.43 | 3.36 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,283,000K ÷ ($1,857,700K – $1,037,800K)
= 4.00
The working capital turnover ratio for ITT Inc has shown fluctuations over the past 8 quarters. It indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio suggests that the company is effectively using its current assets to support its sales activities.
In Q4 2023, the working capital turnover ratio decreased to 4.00 from the previous quarter's 4.38, showing a slight drop in efficiency in converting working capital into sales. However, the ratio is still relatively high compared to earlier quarters in 2022.
In Q3 2022, the company achieved its highest working capital turnover ratio of 5.61, indicating a strong ability to turn its working capital into sales revenue. Subsequently, the ratio decreased in the following quarters before picking up again in Q1 2023.
Overall, there have been fluctuations in ITT Inc's working capital turnover ratio, but it has generally remained at levels that suggest efficient utilization of working capital. Further monitoring is recommended to assess any potential trends or issues affecting the company's working capital management.
Peer comparison
Dec 31, 2023