KBR Inc (KBR)
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 | 6,834,000 | 6,723,000 | 6,586,000 | 6,479,000 | 6,496,000 | 7,390,000 | 7,610,000 | 7,505,000 | 7,249,000 | 6,239,000 | 5,795,000 | 5,668,000 | 5,767,000 | 5,753,000 | 5,799,000 | 5,836,000 | 5,639,000 | 5,517,000 | 5,370,000 | 5,215,000 |
| Total current assets | US$ in thousands | 1,651,000 | 2,092,000 | 2,374,000 | 1,912,000 | 1,747,000 | 1,719,000 | 1,882,000 | 1,774,000 | 2,152,000 | 2,136,000 | 1,726,000 | 1,628,000 | 1,634,000 | 2,207,000 | 1,897,000 | 1,982,000 | 2,011,000 | 2,107,000 | 1,980,000 | 1,971,000 |
| Total current liabilities | US$ in thousands | 1,572,000 | 2,127,000 | 2,252,000 | 1,928,000 | 1,821,000 | 1,389,000 | 1,492,000 | 1,461,000 | 1,875,000 | 1,788,000 | 1,443,000 | 1,419,000 | 1,455,000 | 1,433,000 | 1,495,000 | 1,627,000 | 1,501,000 | 1,652,000 | 1,563,000 | 1,505,000 |
| Working capital turnover | 86.51 | — | 53.98 | — | — | 22.39 | 19.51 | 23.98 | 26.17 | 17.93 | 20.48 | 27.12 | 32.22 | 7.43 | 14.43 | 16.44 | 11.06 | 12.13 | 12.88 | 11.19 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,834,000K ÷ ($1,651,000K – $1,572,000K)
= 86.51
The working capital turnover ratio measures how efficiently a company is managing its working capital to generate sales. A higher ratio indicates that the company is effectively using its working capital to generate revenue.
Based on the data provided, KBR Inc's working capital turnover ratio has fluctuated significantly over the reporting periods. In general, the company's working capital turnover has shown an increasing trend, with notable peaks and troughs.
For instance, in the most recent period of December 31, 2023, the working capital turnover ratio was 86.51, which indicates a substantial improvement in the efficiency of utilizing working capital to generate sales. This suggests that the company was able to generate a high level of sales relative to its working capital investment during that period.
However, there are missing data points in some quarters, such as in September 2023 and March 2023, which could limit the ability to analyze the trend consistently. It is essential to consider additional factors and conduct a more in-depth analysis to understand the specific reasons behind the fluctuations in the working capital turnover ratio over time.
Overall, the upward trend in the working capital turnover ratio for KBR Inc suggests improvements in its working capital management efficiency, which can positively impact the company's overall financial performance and profitability.
Peer comparison
Dec 31, 2023