LCI Industries (LCII)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,784,809	3,841,611	4,014,376	4,535,886	5,207,146	5,526,210	5,559,440	5,117,010	4,472,700	4,042,292	3,704,711	3,136,756	2,796,166	2,577,185	2,335,677	2,438,980	2,371,482	2,344,077	2,362,100	2,417,487
Total current assets	US$ in thousands	1,116,870	1,230,640	1,235,240	1,364,780	1,390,780	1,505,490	1,697,700	1,827,120	1,566,880	1,360,470	1,215,980	1,068,180	869,801	795,672	697,291	769,399	670,791	580,596	538,098	553,096
Total current liabilities	US$ in thousands	394,992	414,016	441,452	436,031	421,300	500,121	638,243	741,003	627,216	684,131	550,590	534,988	416,394	400,523	309,871	300,037	271,258	256,072	220,392	215,211
Working capital turnover		5.24	4.70	5.06	4.88	5.37	5.50	5.25	4.71	4.76	5.98	5.57	5.88	6.17	6.52	6.03	5.20	5.94	7.22	7.43	7.15

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,784,809K ÷ ($1,116,870K – $394,992K)
= 5.24

The working capital turnover ratio for LCI Industries has shown some fluctuations over the past eight quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.

In Q4 2023, the working capital turnover was 5.24, which indicates that the company generated $5.24 in revenue for every dollar of working capital invested. This was a decrease from the Q3 2023 ratio of 4.70. However, the Q4 2023 ratio was still higher than the Q1 2023 ratio of 4.88.

Looking at the trend over the past two years, the working capital turnover ratio has generally been above 5, indicating that LCI Industries has been effectively using its working capital to generate sales. The highest ratio was seen in Q4 2022 at 5.37, while the lowest was in Q1 2022 at 4.71.

Overall, the company has been maintaining a healthy working capital turnover ratio, which suggests efficient management of its working capital to support its operations and revenue generation. It is important for LCI Industries to continue monitoring this ratio to ensure optimal utilization of its working capital resources.