Callaway Golf Company (MODG)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,200,300 | 4,152,800 | 4,099,400 | 4,064,800 | 4,100,200 | 4,077,300 | 4,031,900 | 3,983,500 | 3,879,900 | 3,753,324 | 3,642,683 | 3,454,542 | 3,079,082 | 2,741,987 | 2,377,880 | 1,771,541 | 1,562,865 | 1,500,177 | 1,433,952 | 1,585,033 |
| Total current assets | US$ in thousands | 1,600,700 | 1,623,900 | 1,613,100 | 1,593,200 | 1,628,100 | 1,602,700 | 1,657,900 | 1,754,800 | 1,518,900 | 1,360,800 | 1,341,700 | 1,403,500 | 1,165,700 | 1,339,410 | 1,254,050 | 1,203,190 | 912,627 | 925,146 | 840,561 | 934,122 |
| Total current liabilities | US$ in thousands | 825,900 | 842,500 | 837,200 | 875,000 | 947,600 | 909,200 | 932,600 | 1,074,600 | 1,176,200 | 1,039,000 | 1,036,300 | 1,156,500 | 866,000 | 840,155 | 787,632 | 696,339 | 391,272 | 371,410 | 343,620 | 648,908 |
| Working capital turnover | 5.42 | 5.31 | 5.28 | 5.66 | 6.03 | 5.88 | 5.56 | 5.86 | 11.32 | 11.66 | 11.93 | 13.99 | 10.27 | 5.49 | 5.10 | 3.50 | 3.00 | 2.71 | 2.89 | 5.56 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,200,300K ÷ ($1,600,700K – $825,900K)
= 5.42
The working capital turnover ratio measures how efficiently Callaway Golf Company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.
Looking at the data provided, we can see fluctuations in the working capital turnover ratio over time. The ratio ranged from a low of 2.71 in September 2020 to a high of 13.99 in March 2022. This indicates significant variability in how effectively the company was managing its working capital during these periods.
Overall, the working capital turnover ratio has shown some inconsistency but generally remained above 5, indicating that Callaway Golf Company has been able to efficiently utilize its working capital to generate sales revenue. However, the ratio has decreased somewhat in the most recent periods, stabilizing around 5. This could suggest a moderation in the efficiency of working capital management compared to the peak levels seen in earlier years.
It would be important for stakeholders to continue monitoring this ratio to ensure that the company remains effective in managing its working capital to support its operations and revenue generation.
Peer comparison
Dec 31, 2024