Liberty Oilfield Services Inc (LBRT)
Working capital turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 4,747,930 | 4,149,230 | 2,470,780 | 965,787 | 1,990,350 |
Total current assets | US$ in thousands | 954,254 | 956,673 | 630,377 | 567,133 | 488,974 |
Total current liabilities | US$ in thousands | 639,424 | 649,497 | 569,247 | 356,146 | 266,495 |
Working capital turnover | 15.08 | 13.51 | 40.42 | 4.58 | 8.95 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,747,930K ÷ ($954,254K – $639,424K)
= 15.08
The working capital turnover of Liberty Energy Inc has shown fluctuations over the past five years. In 2023, the working capital turnover ratio was 15.08, indicating that the company generated $15.08 in revenue for every $1 of working capital invested. This represents an improvement from the previous year, where the ratio was 13.51.
In 2021, there was a significant increase in the working capital turnover ratio to 40.42, suggesting that the company efficiently utilized its working capital to generate revenue. This spike may indicate a more aggressive approach to managing working capital or changes in the company's operations that led to a temporary boost in efficiency.
The working capital turnover ratio dropped to 4.58 in 2020, indicating a decrease in the company's efficiency in utilizing its working capital to generate revenue. However, the ratio improved in 2019 to 8.95, showing a better utilization of working capital compared to the previous year.
Overall, Liberty Energy Inc's working capital turnover has been fluctuating over the years, with some periods of significant improvement and others showing a decline in efficiency. Further analysis of the company's operations and financial performance is necessary to fully understand the factors driving these fluctuations.
Peer comparison
Dec 31, 2023