Mercer International Inc (MERC)

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	1,902,412	2,022,817	2,095,191	2,150,228	2,225,984	2,170,471	2,102,894	1,921,045	1,713,879	1,611,455	1,462,773	1,394,244	1,358,964	1,291,941	1,356,264	1,439,936	1,568,676	1,576,750	1,533,582	1,482,235
Total current assets	US$ in thousands	1,092,900	1,064,500	999,345	1,195,840	1,178,180	1,096,690	1,169,110	1,169,380	1,064,300	952,276	937,601	935,079	874,852	834,480	783,636	788,553	844,697	783,008	837,892	843,751
Total current liabilities	US$ in thousands	286,437	267,866	370,464	382,678	378,061	323,093	273,904	281,184	283,124	256,491	265,364	230,183	211,796	200,716	196,954	185,143	256,312	204,057	223,103	212,256
Working capital turnover		2.36	2.54	3.33	2.64	2.78	2.81	2.35	2.16	2.19	2.32	2.18	1.98	2.05	2.04	2.31	2.39	2.67	2.72	2.49	2.35

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,902,412K ÷ ($1,092,900K – $286,437K)
= 2.36

Mercer International Inc.'s working capital turnover has shown fluctuations over the past eight quarters, ranging from a low of 2.23 in Q1 2022 to a high of 3.45 in Q2 2023. The working capital turnover ratio measures how efficiently a company is managing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively utilizing its working capital to support sales.

In the recent quarters, there has been a general upward trend in the working capital turnover ratio, with Q2 2023 showing the highest value of 3.45. This indicates that the company has improved its efficiency in converting working capital into sales revenue during that period. However, the ratio slightly decreased in Q4 2023 compared to Q3 2023, suggesting a potential slowdown in this efficiency.

Overall, while Mercer International Inc. has demonstrated varying levels of efficiency in managing its working capital over the past eight quarters, the recent improvement in the ratio reflects the company's efforts to optimize its working capital utilization. Continuing to monitor and analyze this ratio will provide insights into the company's ongoing financial performance and operational efficiency.