Mettler-Toledo International Inc (MTD)
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 | 3,872,364 | 3,762,226 | 3,750,153 | 3,785,520 | 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 |
| Total current assets | US$ in thousands | 1,193,910 | 1,198,230 | 1,178,310 | 1,211,110 | 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 |
| Total current liabilities | US$ in thousands | 1,168,190 | 1,184,970 | 1,281,180 | 1,131,930 | 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 |
| Working capital turnover | 150.56 | 283.73 | — | 47.81 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,872,364K ÷ ($1,193,910K – $1,168,190K)
= 150.56
The working capital turnover ratio for Mettler-Toledo International Inc has shown a fluctuating trend over the analyzed period. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
From March 31, 2020, to December 31, 2023, the working capital turnover ratio steadily increased from 5.72 to 77.12, suggesting that the company was improving its efficiency in utilizing working capital to drive sales.
However, from March 31, 2024, to September 30, 2024, there was a significant spike in the ratio, reaching 283.73 on September 30, 2024. This could be indicative of a sudden surge in revenue generation relative to working capital, which may be a positive sign of operational efficiency or aggressive sales growth.
The extreme fluctuations in the working capital turnover ratio warrant further investigation into the company's operational and financial activities to understand the drivers behind these drastic changes. It is important to assess whether the sudden spikes in the ratio are sustainable or if they reflect temporary conditions that may need to be closely monitored.
Peer comparison
Dec 31, 2024