Matson Inc (MATX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,081,800	4,326,500	3,903,500	2,353,100	2,182,000
Total current assets	US$ in thousands	602,300	759,600	704,500	305,900	289,600
Total current liabilities	US$ in thousands	562,300	581,600	612,400	511,500	436,700
Working capital turnover		77.04	24.31	42.38	—	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,081,800K ÷ ($602,300K – $562,300K)
= 77.04

Matson Inc's working capital turnover has shown significant fluctuations over the past five years. The ratio indicates how efficiently the company is managing its working capital to generate sales revenue.

In 2023, Matson Inc achieved a working capital turnover of 77.36, reflecting a substantial improvement compared to the previous year. This significant increase suggests that the company effectively utilized its working capital to support its operations and generate revenue.

In 2022, the working capital turnover stood at 24.40, indicating a decrease from the previous year. This decline may be attributed to inefficiencies in managing working capital or a slowing down of sales generation.

In 2021, the ratio improved to 42.62, indicating a more efficient utilization of working capital compared to the previous year. This improvement suggests that the company enhanced its working capital management practices to drive sales growth.

Unfortunately, data for 2020 and 2019 is not available, making it challenging to assess the trend over a longer period accurately.

Overall, the significant fluctuations in Matson Inc's working capital turnover imply varying levels of efficiency in managing working capital to drive sales. An increasing trend in the ratio indicates that the company is improving its operational efficiency, while a decreasing trend may signal potential challenges in generating sales with the available working capital.