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.