Minerals Technologies Inc (MTX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,108,700 | 2,074,800 | 1,820,700 | 1,556,400 | 1,745,900 |
| Total current assets | US$ in thousands | 1,099,000 | 1,070,500 | 1,028,500 | 1,033,600 | 919,200 |
| Total current liabilities | US$ in thousands | 457,300 | 502,600 | 419,800 | 295,800 | 398,500 |
| Working capital turnover | 3.29 | 3.65 | 2.99 | 2.11 | 3.35 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,108,700K ÷ ($1,099,000K – $457,300K)
= 3.29
Minerals Technologies, Inc. has shown varying trends in its working capital turnover over the past five years. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio is generally indicative of more efficient operations.
In 2023, the working capital turnover ratio was 3.38, showing a slight decline from the previous year's ratio of 3.74. Despite the decrease, the company's working capital turnover remains relatively high, indicating that Minerals Technologies, Inc. effectively leverages its working capital to drive sales.
Comparing to 2021 when the ratio was 3.05 and 2020 when it was 2.16, the company exhibited significant improvement in utilizing its working capital efficiently in 2022 and 2023. However, it is worth noting that the ratio was highest in 2019 at 3.44, suggesting that the company was most effective in managing its working capital that year.
Overall, the trend in working capital turnover for Minerals Technologies, Inc. demonstrates fluctuations in efficiency over the past five years, with some years showing stronger performance than others. Further analysis of the company's financial and operational strategies may be needed to understand the factors driving these fluctuations in working capital turnover.
Peer comparison
Dec 31, 2023