Knife River Corporation (KNF)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,899,002 | 2,888,686 | 2,873,766 | 2,852,060 | 2,830,370 | 2,720,992 | 2,606,050 | 2,532,663 | 2,534,729 |
| Total current assets | US$ in thousands | 987,668 | 1,159,640 | 949,687 | 817,759 | 913,500 | 1,011,380 | 958,300 | 639,158 | 813,693 |
| Total current liabilities | US$ in thousands | 370,037 | 426,103 | 378,309 | 297,230 | 347,300 | 424,967 | 384,400 | 473,155 | 286,006 |
| Working capital turnover | 4.69 | 3.94 | 5.03 | 5.48 | 5.00 | 4.64 | 4.54 | 15.26 | 4.80 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,899,002K ÷ ($987,668K – $370,037K)
= 4.69
Knife River Corporation's working capital turnover ratio has fluctuated over the period from December 31, 2022, to December 31, 2024. The working capital turnover ratio measures a company's ability to efficiently generate revenue from its working capital. A higher turnover ratio indicates better efficiency in utilizing working capital to generate sales.
Based on the provided data, Knife River Corporation experienced a significant increase in working capital turnover from March 31, 2023, to March 31, 2024, with a peak ratio of 15.26. This suggests that the company was able to generate $15.26 in revenue for every dollar of working capital during this period.
However, the working capital turnover ratio decreased in the subsequent quarters, indicating a decline in efficiency in utilizing working capital to generate revenue. The ratio ranged from 3.94 to 5.48 from September 30, 2024, to March 31, 2024, showing some variability in the company's ability to efficiently generate revenue from its working capital.
Overall, the trend in Knife River Corporation's working capital turnover ratio reflects both periods of high efficiency and some fluctuations in performance. It is important for the company to closely monitor its working capital management and strive for consistent improvement in maximizing revenue generation from its working capital.
Peer comparison
Dec 31, 2024