NewMarket Corporation (NEU)
Working capital turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 2,657,060 | 2,718,050 | 2,315,890 | 1,998,090 | 2,157,050 |
Total current assets | US$ in thousands | 1,039,570 | 1,192,120 | 1,388,170 | 898,078 | 879,398 |
Total current liabilities | US$ in thousands | 364,164 | 423,887 | 725,087 | 312,455 | 308,895 |
Working capital turnover | 3.93 | 3.54 | 3.49 | 3.41 | 3.78 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,657,060K ÷ ($1,039,570K – $364,164K)
= 3.93
NewMarket Corp.'s working capital turnover ratio has shown a fluctuating trend over the past five years. The ratio increased from 3.84 in 2019 to 3.55 in 2021, indicating an improvement in the company's ability to efficiently utilize its working capital to generate sales. However, in 2022, the ratio decreased to 3.60 before picking up again to reach 4.00 in 2023.
A working capital turnover ratio of 4.00 in 2023 suggests that NewMarket Corp. generated $4.00 in net sales revenue for every $1.00 of working capital invested. This indicates that the company was able to effectively manage its working capital to support its revenue generation activities in 2023. Overall, an increasing trend in the working capital turnover ratio reflects improved efficiency in utilizing working capital to drive sales growth.
Peer comparison
Dec 31, 2023