Liberty Oilfield Services Inc (LBRT)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 4,315,160 4,747,930 4,149,230 2,470,780 965,787
Total current assets US$ in thousands 848,523 954,254 956,673 630,377 567,133
Total current liabilities US$ in thousands 666,523 639,424 649,497 569,247 356,146
Working capital turnover 23.71 15.08 13.51 40.42 4.58

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,315,160K ÷ ($848,523K – $666,523K)
= 23.71

The working capital turnover of Liberty Oilfield Services Inc has shown fluctuations over the years. It increased significantly from 4.58 in December 2020 to 40.42 in December 2021, indicating a substantial improvement in the company's efficiency in utilizing its working capital to generate revenue. However, there was a decline in the ratio to 13.51 in December 2022, suggesting a potential inefficiency in managing working capital during that period.

Subsequently, the ratio increased to 15.08 in December 2023, reflecting a possible adjustment in the company's working capital management. In December 2024, the working capital turnover ratio further improved to 23.71, indicating a better utilization of working capital to support revenue generation.

Overall, Liberty Oilfield Services Inc has demonstrated varying levels of efficiency in its working capital turnover over the years, with fluctuations possibly influenced by changing business conditions and management strategies. It is essential for the company to monitor and optimize its working capital turnover to enhance operational efficiency and financial performance.