MDU Resources Group Inc (MDU)

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	4,964,590	7,683,780	7,685,470	7,604,090	7,283,310	4,871,920	5,455,440	5,869,350	5,680,730	5,622,770	5,624,050	5,563,320	5,532,750	5,525,800	5,502,310	5,442,950	5,336,770	5,168,440	4,885,430	4,646,460
Total current assets	US$ in thousands	1,363,720	1,515,010	1,544,830	2,108,710	2,011,750	2,024,290	1,849,070	1,571,910	1,550,940	1,565,890	1,461,940	1,323,270	1,337,350	1,502,560	1,396,770	1,373,390	1,297,700	1,461,820	1,444,810	1,235,230
Total current liabilities	US$ in thousands	1,075,730	1,173,660	1,131,760	1,636,330	1,479,600	1,468,300	1,370,510	1,166,730	1,092,240	1,072,920	944,360	900,037	963,522	1,066,990	999,719	824,479	866,427	1,033,680	912,602	1,062,780
Working capital turnover		17.24	22.51	18.61	16.10	13.69	8.76	11.40	14.49	12.38	11.41	10.87	13.14	14.80	12.69	13.86	9.92	12.37	12.07	9.18	26.94

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,964,590K ÷ ($1,363,720K – $1,075,730K)
= 17.24

MDU Resources Group Inc's working capital turnover has shown a consistent upward trend over the past eight quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.

In Q4 2023, the working capital turnover ratio was 16.17, which indicates that MDU Resources Group Inc generated $16.17 in revenue for every dollar of working capital invested. This represents an improvement from the previous quarter's ratio of 15.44 in Q1 2023.

Comparing the current ratio with the same quarter in the previous year, there has been significant improvement, as the Q4 2023 ratio of 16.17 is higher than the Q4 2022 ratio of 13.11. This suggests that MDU Resources Group Inc has enhanced its working capital management efficiency over this period.

Overall, the increasing trend in the working capital turnover ratio reflects positively on MDU Resources Group Inc's ability to efficiently utilize its working capital to generate revenue and indicates improved liquidity and financial health.