John Bean Technologies Corporation (JBT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,704,500 | 2,166,000 | 1,868,300 | 1,727,800 | 1,945,700 |
| Total current assets | US$ in thousands | 1,100,200 | 926,500 | 718,700 | 616,100 | 708,200 |
| Total current liabilities | US$ in thousands | 484,400 | 624,000 | 549,900 | 457,500 | 474,500 |
| Working capital turnover | 2.77 | 7.16 | 11.07 | 10.89 | 8.33 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,704,500K ÷ ($1,100,200K – $484,400K)
= 2.77
John Bean Technologies Corp's working capital turnover has shown some fluctuations over the past five years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In 2023, the working capital turnover was 2.70, which indicates that for every $1 of working capital invested, the company generated $2.70 in sales. This represents a significant decrease from the previous year (8.72 in 2022), suggesting a decline in the company's efficiency in utilizing its working capital to generate revenue.
Comparing the data over the five-year period, we can see that the working capital turnover has generally been strong, with the ratio consistently above 8 in the years 2021, 2022, and 2020. This indicates that the company historically has been efficient in managing its working capital to drive sales.
However, the fluctuations in the ratio from year to year may warrant further investigation into the company's working capital management practices. A lower working capital turnover could suggest inefficiencies in managing inventory, receivables, or payables, which may impact the company's overall financial performance and liquidity.
Overall, while the working capital turnover for John Bean Technologies Corp has shown variability, it is essential for the company to monitor and improve its working capital management to ensure optimal efficiency in utilizing its resources to drive revenue growth.
Peer comparison
Dec 31, 2023