Callaway Golf Company (MODG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,259,500 | 4,100,200 | 3,879,900 | 3,049,960 | 1,551,060 |
| Total current assets | US$ in thousands | 1,600,700 | 1,628,100 | 1,518,900 | 1,165,700 | 912,627 |
| Total current liabilities | US$ in thousands | 825,900 | 947,600 | 1,176,200 | 866,000 | 391,272 |
| Working capital turnover | 5.50 | 6.03 | 11.32 | 10.18 | 2.98 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,259,500K ÷ ($1,600,700K – $825,900K)
= 5.50
Based on the provided data, the working capital turnover for Callaway Golf Company has shown variability over the years. The working capital turnover ratio measures how efficiently a company is able to generate revenue using its working capital.
In December 2020, the working capital turnover was 2.98, indicating that the company generated $2.98 in revenue for every dollar of working capital invested. This ratio increased significantly to 10.18 in December 2021, demonstrating a notable improvement in efficiency.
In the subsequent years, the working capital turnover continued to show fluctuations. It peaked at 11.32 in December 2022, suggesting a further enhancement in utilizing working capital to generate revenue efficiently. However, there was a decrease in December 2023 to 6.03, followed by a further decline to 5.50 in December 2024.
Overall, despite the fluctuations, Callaway Golf Company has generally shown an ability to efficiently utilize its working capital to generate revenue. It is essential for the company to monitor and manage its working capital effectively to sustain and improve this efficiency in the future.
Peer comparison
Dec 31, 2024