Matson Inc (MATX)

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 3,421,800 3,320,400 3,185,900 3,111,900 3,094,600 3,107,300 3,394,600 3,882,300 4,343,000 4,808,400 4,765,200 4,379,000 3,925,300 3,358,400 2,932,000 2,581,200 2,383,300 2,223,900 2,150,800 2,184,600
Total current assets US$ in thousands 609,600 651,800 546,200 512,000 602,300 635,800 577,800 566,700 759,600 874,500 1,112,700 874,800 704,500 481,700 402,700 313,900 305,900 289,600 273,600 308,700
Total current liabilities US$ in thousands 560,400 577,700 584,500 530,500 562,300 570,600 549,000 535,800 581,600 599,900 632,100 610,200 612,400 547,300 532,300 519,100 511,500 453,600 449,600 470,900
Working capital turnover 69.55 44.81 — — 77.36 47.66 117.87 125.64 24.40 17.51 9.92 16.55 42.62 — — — — — — —

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,421,800K ÷ ($609,600K – $560,400K)
= 69.55

The working capital turnover ratio for Matson Inc has shown fluctuating trends over the period covered in the data. It was not calculable for the initial period and remained unknown until March 31, 2021. From there on, the ratio was 42.62 by the end of December 31, 2021, indicating that the company effectively utilized its working capital to generate sales during that period.

However, the ratio declined to 16.55 as of March 31, 2022, and further dropped to 9.92 by June 30, 2022, suggesting potential inefficiencies in managing working capital in relation to sales generation. The ratio improved slightly to 17.51 by September 30, 2022, before increasing again to 24.40 by December 31, 2022.

The working capital turnover ratio then experienced a significant surge to 125.64 by March 31, 2023, indicating a substantial increase in the company's efficiency in converting working capital into revenues. This high ratio was sustained at 117.87 by June 30, 2023, followed by a moderate decrease to 47.66 by September 30, 2023, and further to 77.36 by December 31, 2023.

Subsequently, the ratio was not calculable for the periods ending March 31, 2024, and June 30, 2024. It reappeared at 44.81 as of September 30, 2024, signaling a decline in efficiency compared to the earlier periods. However, by December 31, 2024, the ratio improved to 69.55, indicating a better utilization of working capital to generate sales.

Overall, fluctuations in the working capital turnover ratio demonstrate varying levels of efficiency in Matson Inc's ability to generate sales from its working capital over the reporting periods. The company should closely monitor and manage its working capital levels to optimize this important financial metric going forward.