JBTMarel Corp (JBTM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,716,000 | 1,664,400 | 1,590,300 | 1,400,800 | 1,727,800 |
| Total current assets | US$ in thousands | 1,863,300 | 1,100,200 | 926,500 | 718,700 | 616,100 |
| Total current liabilities | US$ in thousands | 535,500 | 484,400 | 624,000 | 549,900 | 457,500 |
| Working capital turnover | 1.29 | 2.70 | 5.26 | 8.30 | 10.89 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,716,000K ÷ ($1,863,300K – $535,500K)
= 1.29
The working capital turnover ratio of JBTMarel Corp has demonstrated a consistent decline over the observed period from December 31, 2020, through December 31, 2024. Specifically, the ratio decreased from 10.89 in 2020 to 8.30 in 2021, indicating a reduction in efficiency in utilizing working capital to generate sales. This downward trend continued markedly, with the ratio falling to 5.26 in 2022, further diminishing to 2.70 in 2023, and reaching a low of 1.29 in 2024.
Such a decline suggests that over this period, the company has become less effective in turning its working capital into sales. A decreasing working capital turnover ratio can imply increased levels of working capital relative to sales, potential challenges in receivables or inventory management, or a strategic shift in operational efficiency. This trend warrants further analysis to understand underlying causes, such as changes in sales volume, credit policies, inventory management, or capital structure adjustments, which could be influencing the observed decline in efficiency.
Peer comparison
Dec 31, 2024