NewMarket Corporation (NEU)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 2,786,560 | 2,698,420 | 2,764,800 | 2,356,110 | 2,010,930 |
Total current assets | US$ in thousands | 1,029,560 | 1,039,570 | 1,192,120 | 1,388,170 | 898,078 |
Total current liabilities | US$ in thousands | 374,478 | 364,164 | 423,887 | 725,087 | 312,455 |
Working capital turnover | 4.25 | 4.00 | 3.60 | 3.55 | 3.43 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,786,560K ÷ ($1,029,560K – $374,478K)
= 4.25
The working capital turnover of NewMarket Corporation has shown a positive trend over the years, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased from 3.43 in December 31, 2020, to 4.25 in December 31, 2024. This signifies that the company is generating more revenue from its working capital investments. A higher working capital turnover ratio reflects that the company is effectively utilizing its current assets to support sales and operations. Overall, the increasing trend in the working capital turnover ratio implies that NewMarket Corporation is managing its working capital efficiently and effectively over the years.
Peer comparison
Dec 31, 2024