Kirby Corporation (KEX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,047,860	2,748,750	2,210,980	2,171,410	2,838,400
Total current assets	US$ in thousands	1,135,160	1,211,760	1,003,860	1,047,970	917,579
Total current liabilities	US$ in thousands	675,795	642,197	543,772	466,032	514,115
Working capital turnover		6.63	4.83	4.81	3.73	7.04

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,047,860K ÷ ($1,135,160K – $675,795K)
= 6.63

The working capital turnover for Kirby Corp. has shown fluctuations over the past five years. In 2019, the working capital turnover was 7.04, indicating that the company generated $7.04 in revenue for every $1 of working capital. However, in 2020, this ratio decreased to 3.73, which suggests that the company's efficiency in utilizing its working capital to generate revenue decreased significantly.

In the following years, there was an improvement in the working capital turnover ratio. In 2021, it increased slightly to 4.88, and in 2022, it further improved to 4.89. This indicates that the company was able to better utilize its working capital to generate sales during these periods.

The most significant improvement was seen in 2023, where the working capital turnover ratio surged to 6.73. This increase suggests that Kirby Corp. significantly improved its efficiency in generating revenue from its working capital investment.

Overall, the trend in working capital turnover for Kirby Corp. shows fluctuations over the years, with a notable improvement in 2023. It is essential for the company to continue monitoring and managing its working capital efficiently to sustain and build upon this positive trend.