Matson Inc (MATX)

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	3,081,800	3,095,300	3,380,000	3,866,100	4,326,500	4,790,200	4,746,900	4,359,700	3,903,500	3,335,600	2,908,600	2,555,100	2,355,900	2,195,800	2,122,200	2,158,100	2,180,600	2,206,100	2,225,200	2,225,500
Total current assets	US$ in thousands	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	289,600	299,500	289,600	306,600
Total current liabilities	US$ in thousands	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	436,700	437,700	425,400	411,100
Working capital turnover		77.04	47.47	117.36	125.12	24.31	17.44	9.88	16.48	42.38	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

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

Working capital turnover is a financial ratio that measures a company's efficiency in generating revenue in relation to its working capital.

Analyzing Matson Inc's working capital turnover from Q1 2022 to Q4 2023 reveals fluctuations in the efficiency of the company's working capital management. The working capital turnover ratio increased from 16.55 in Q1 2022 to 77.36 in Q4 2023, indicating a significant improvement in utilizing working capital to generate revenue.

Throughout the quarters, there were notable variations in the working capital turnover ratio, indicating changes in Matson Inc's operational efficiency. The ratio peaked at 125.64 in Q1 2023, reflecting a peak in revenue generation relative to the working capital employed. Conversely, the lowest ratio of 9.92 in Q2 2022 suggests a period of lower efficiency in utilizing working capital to generate revenue.

Overall, the trend in Matson Inc's working capital turnover demonstrates fluctuations in operational efficiency over the quarters. The company should continue to monitor and manage its working capital effectively to sustain and improve its revenue generation capabilities.