LCI Industries (LCII)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,784,810	5,207,140	4,472,700	2,796,170	2,371,480
Total current assets	US$ in thousands	1,116,870	1,390,780	1,566,880	869,801	670,791
Total current liabilities	US$ in thousands	394,992	421,300	627,216	416,394	271,258
Working capital turnover		5.24	5.37	4.76	6.17	5.94

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,784,810K ÷ ($1,116,870K – $394,992K)
= 5.24

The working capital turnover ratio for LCI Industries has exhibited fluctuations over the past five years. In 2023, the ratio stood at 5.24, a slight decrease from 5.37 in 2022. It was lower than the ratio recorded in 2020 but higher than those of 2021 and 2019. This indicates that, on average, LCI Industries generated $5.24 in revenue for every dollar of working capital invested in the business in 2023. The trend suggests that the company has been effectively utilizing its working capital to generate sales revenue, although there have been variations in efficiency over the years. It would be beneficial for LCI Industries to continue monitoring and managing its working capital turnover to ensure optimal efficiency in its operations.