Newmont Goldcorp Corp (NEM)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,635,000 | 11,807,000 | 12,171,000 | 11,286,000 | 9,673,000 |
| Total current assets | US$ in thousands | 7,512,000 | 6,515,000 | 7,696,000 | 8,505,000 | 6,272,000 |
| Total current liabilities | US$ in thousands | 5,998,000 | 2,926,000 | 2,654,000 | 3,369,000 | 2,385,000 |
| Working capital turnover | 7.68 | 3.29 | 2.41 | 2.20 | 2.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,635,000K ÷ ($7,512,000K – $5,998,000K)
= 7.68
The working capital turnover ratio for Newmont Corp has shown a positive trend over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales.
In 2023, the working capital turnover ratio was 7.80, a significant increase from the previous year's ratio of 3.32. This suggests that the company was able to generate sales nearly 8 times the amount of its working capital in 2023, reflecting a more efficient management of its current assets and liabilities.
The increase in the working capital turnover ratio from 2022 to 2023 could be attributed to various factors such as better inventory management, more effective accounts receivable collections, or improved supplier payment terms. This improved efficiency indicates a positive development in Newmont Corp's operational performance and financial management.
Looking at the historical trend, we can see that the working capital turnover ratio has generally been increasing over the past five years, with some fluctuations observed. This upward trend indicates a consistent effort by the company to optimize its working capital utilization, leading to improved liquidity and profitability.
Overall, the increasing trend in the working capital turnover ratio for Newmont Corp suggests a positive impact on the company's financial health and operational efficiency.