Mettler-Toledo International Inc (MTD)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,788,309	3,910,997	3,954,381	3,950,651	3,919,704	3,899,264	3,865,368	3,811,332	3,717,931	3,618,676	3,474,083	3,240,405	3,085,177	2,991,160	2,937,669	2,978,362	3,008,652	2,982,607	2,963,587	2,954,217
Total current assets	US$ in thousands	1,230,200	1,196,910	1,246,510	1,286,770	1,375,090	1,315,900	1,324,700	1,309,890	1,269,360	1,246,220	1,172,610	1,080,210	1,056,900	1,046,320	989,808	1,200,860	1,109,650	963,808	981,446	969,384
Total current liabilities	US$ in thousands	1,181,080	1,070,420	1,008,000	1,004,250	1,147,730	1,164,940	1,118,580	1,087,410	1,146,540	1,001,560	938,369	841,809	840,327	764,081	702,829	679,838	754,512	719,255	707,251	707,964
Working capital turnover		77.12	30.92	16.58	13.98	17.24	25.83	18.75	17.13	30.27	14.79	14.83	13.59	14.25	10.60	10.24	5.72	8.47	12.20	10.81	11.30

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,788,309K ÷ ($1,230,200K – $1,181,080K)
= 77.12

The working capital turnover ratio for Mettler-Toledo International, Inc. fluctuated over the past eight quarters. In Q4 2023, the company achieved a significant working capital turnover ratio of 77.12, indicating that it generated $77.12 in net revenue for each dollar invested in working capital during that period. This was a notable improvement compared to the preceding quarters.

In Q3 2023, the ratio decreased to 30.92, showing a decline in efficiency in generating revenue from working capital compared to the previous quarter. The ratio further decreased in Q2 2023 to 16.58 and in Q1 2023 to 13.98, reflecting a decreasing trend in turning working capital into sales during those periods.

Compared to the same quarter the previous year (Q4 2022), when the working capital turnover ratio was 17.24, there was a substantial increase in efficiency in Q4 2023.

Overall, the working capital turnover ratio for Mettler-Toledo International, Inc. has shown fluctuations over the past eight quarters, with Q4 2023 standing out as a particularly strong performance in efficiently utilizing working capital to drive revenue generation.