Mettler-Toledo International Inc (MTD)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,788,310	3,919,710	3,717,930	3,085,180	3,008,650
Total current assets	US$ in thousands	1,230,200	1,375,090	1,269,360	1,056,900	1,109,650
Total current liabilities	US$ in thousands	1,181,080	1,147,730	1,146,540	840,327	754,512
Working capital turnover		77.12	17.24	30.27	14.25	8.47

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,788,310K ÷ ($1,230,200K – $1,181,080K)
= 77.12

Mettler-Toledo International, Inc.'s working capital turnover has exhibited a significant upward trend over the past five years. The ratio increased from 8.47 in 2019 to 77.12 in 2023, showcasing a substantial improvement in the company's efficiency in utilizing its working capital to generate revenue.

This steady growth indicates that the company has been effectively managing its working capital resources to support its operational activities and sales generation. A higher working capital turnover ratio implies that the company is generating more revenue per dollar of working capital invested, reflecting improved liquidity and operational efficiency.

The surge in the working capital turnover ratio suggests that Mettler-Toledo International, Inc. has been able to streamline its working capital management practices and optimize the utilization of its current assets and liabilities. This enhanced efficiency can lead to increased profitability and overall financial performance for the company.

Overall, the consistent increase in the working capital turnover ratio over the five-year period reflects positively on Mettler-Toledo International, Inc.'s operational efficiency and financial management prowess.