Liberty Oilfield Services Inc (LBRT)

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 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 4,315,154 4,446,540 4,523,860 4,558,970 4,747,930 4,898,560 4,870,910 4,618,539 4,149,229 3,607,374 3,072,851 2,711,520 2,470,782 2,044,633 1,538,401 1,045,475 965,787 1,106,172 1,473,756 1,927,541
Total current assets US$ in thousands 848,523 922,520 1,002,310 978,008 954,254 1,067,620 1,073,920 1,070,190 956,673 996,061 840,924 761,561 630,377 671,565 668,691 583,223 567,133 337,644 299,690 517,973
Total current liabilities US$ in thousands 666,523 748,571 743,897 662,365 639,424 793,809 744,230 754,777 649,497 704,857 622,072 623,200 569,247 509,052 491,144 393,549 356,146 166,015 100,952 283,268
Working capital turnover 23.71 25.56 17.51 14.44 15.08 17.89 14.77 14.64 13.51 12.39 14.04 19.60 40.42 12.58 8.66 5.51 4.58 6.45 7.42 8.21

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,315,154K ÷ ($848,523K – $666,523K)
= 23.71

The working capital turnover of Liberty Oilfield Services Inc has fluctuated over the period under consideration. The ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio generally signifies better efficiency in managing working capital.

From March 31, 2020, to June 30, 2021, the working capital turnover showed a decreasing trend, potentially indicating a reduction in efficiency or a change in business operations. However, from September 30, 2021, onwards, there is a significant increase in the turnover ratio, suggesting improved efficiency in utilizing working capital to generate revenue.

The peak in the working capital turnover ratio was observed on December 31, 2021, at a value of 40.42. This exceptionally high ratio may imply a very effective management of working capital during that period, leading to increased sales generation for each unit of working capital invested.

Subsequently, the working capital turnover ratio fluctuated but generally remained at higher levels compared to the earlier periods. This indicates that the company has maintained a relatively efficient use of its working capital to support sales activities.

Overall, the working capital turnover ratio of Liberty Oilfield Services Inc indicates varying levels of efficiency in managing working capital over time, with some periods of notable improvement and variability. It is essential for the company to sustain or further enhance this efficiency to support its growth and profitability in the long term.