MSA Safety (MSA)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,787,650	1,527,950	1,400,180	1,348,220	1,401,980
Total current assets	US$ in thousands	786,270	880,126	792,804	801,425	693,363
Total current liabilities	US$ in thousands	332,818	345,865	330,606	310,545	277,509
Working capital turnover		3.94	2.86	3.03	2.75	3.37

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,787,650K ÷ ($786,270K – $332,818K)
= 3.94

MSA Safety Inc's working capital turnover has shown variability over the past five years, ranging from 2.86 to 3.94. The working capital turnover ratio indicates the efficiency with which the company utilizes its working capital to generate sales revenue.

In 2023, the working capital turnover ratio increased to 3.94, indicating an improvement in the company's ability to generate sales relative to its working capital. This suggests that MSA Safety Inc was able to efficiently convert its working capital into revenue during the year.

Comparing to the prior year, the working capital turnover ratio had increased significantly from 2.86 in 2022. This improvement may suggest better management of the company's working capital and a more effective use of resources to drive sales.

However, it is also important to note that the working capital turnover ratio in 2023 is slightly higher than in 2019 and 2021 but lower than in 2020. This fluctuation over the years indicates some variability in the company's working capital efficiency and potential changes in operating efficiency or sales generation strategies.

Overall, the increasing trend in the working capital turnover ratio from 2022 to 2023 is a positive sign of improved efficiency in utilizing working capital to generate sales revenue, but it is essential for MSA Safety Inc to maintain this trend and continue optimizing its working capital management in the future.