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.