Mettler-Toledo International Inc (MTD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,872,360 | 3,788,310 | 3,919,710 | 3,717,930 | 3,085,180 |
| Total current assets | US$ in thousands | 1,193,910 | 1,230,200 | 1,375,090 | 1,269,360 | 1,056,900 |
| Total current liabilities | US$ in thousands | 1,168,190 | 1,181,080 | 1,147,730 | 1,146,540 | 840,327 |
| Working capital turnover | 150.56 | 77.12 | 17.24 | 30.27 | 14.25 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,872,360K ÷ ($1,193,910K – $1,168,190K)
= 150.56
Mettler-Toledo International Inc's working capital turnover has shown a significant increase over the years, from 14.25 in December 31, 2020, to 150.56 in December 31, 2024. This indicates that the company is more efficient at utilizing its working capital to generate sales. The spike in the ratio in 2024 to 150.56 suggests a remarkable improvement in managing its working capital, possibly through more effective inventory management, accounts receivable collection, or accounts payable payment strategies. Such a high turnover ratio implies that the company is able to quickly convert its working capital into revenue multiple times throughout the year, showcasing strong operational efficiency and liquidity management.
Peer comparison
Dec 31, 2024