MDU Resources Group Inc (MDU)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,657,340 | 4,441,780 | 5,680,730 | 5,532,750 | 5,336,780 |
| Total current assets | US$ in thousands | 1,363,720 | 2,011,750 | 1,550,940 | 1,337,350 | 1,297,700 |
| Total current liabilities | US$ in thousands | 1,075,730 | 1,479,600 | 1,092,240 | 963,522 | 866,427 |
| Working capital turnover | 16.17 | 8.35 | 12.38 | 14.80 | 12.37 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,657,340K ÷ ($1,363,720K – $1,075,730K)
= 16.17
The working capital turnover ratio for MDU Resources Group Inc has shown a consistent improvement over the past five years, increasing from 12.37 in 2019 to 16.17 in 2023. This indicates that the company is becoming more efficient in utilizing its working capital to generate revenue. A higher working capital turnover ratio implies that the company is able to generate more sales revenue per dollar of working capital invested.
The average working capital turnover ratio over the five-year period is 13.97, reflecting a relatively strong performance in managing working capital efficiency. This trend suggests that MDU Resources Group Inc has been successful in optimizing its working capital levels to support its operations and drive business growth. Additionally, the increasing trend in the ratio indicates that the company has been able to improve its operational efficiency and convert its working capital into sales at a faster rate.
Overall, the improving working capital turnover ratio of MDU Resources Group Inc signals effective management of its working capital resources, which is essential for maintaining liquidity, meeting short-term obligations, and supporting business operations.
Peer comparison
Dec 31, 2023