Callaway Golf Company (MODG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,100,200 | 3,879,900 | 3,049,960 | 1,551,060 | 1,655,710 |
| Total current assets | US$ in thousands | 1,628,100 | 1,518,900 | 1,165,700 | 912,627 | 789,350 |
| Total current liabilities | US$ in thousands | 947,600 | 1,176,200 | 866,000 | 391,272 | 523,246 |
| Working capital turnover | 6.03 | 11.32 | 10.18 | 2.98 | 6.22 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,100,200K ÷ ($1,628,100K – $947,600K)
= 6.03
The working capital turnover of Topgolf Callaway Brands Corp has exhibited fluctuations over the past five years. In 2023, the working capital turnover ratio decreased to 6.30 from 11.66 in 2022, indicating a decline in the efficiency of utilizing working capital to generate revenue. This could suggest that the company might be experiencing challenges in managing its working capital effectively.
Comparing to the previous years, the working capital turnover ratio was relatively high in 2022 and 2021, indicating that the company was able to generate sales efficiently using its working capital during those periods. However, a sharp decrease in 2020 to a ratio of 3.05 suggests potential inefficiencies or a decrease in sales relative to the amount of working capital invested.
In 2019, the working capital turnover ratio was 6.39, showing a similar level of efficiency as in 2023. Overall, fluctuations in the working capital turnover ratio highlight the need for Topgolf Callaway Brands Corp to closely monitor its working capital management practices to ensure optimal utilization of resources for generating revenue in the future.
Peer comparison
Dec 31, 2023