National Presto Industries Inc (NPK)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 340,912 | 321,623 | 355,777 | 352,627 | 308,510 |
| Total current assets | US$ in thousands | 360,110 | 326,632 | 348,053 | 357,240 | 337,833 |
| Total current liabilities | US$ in thousands | 72,019 | 53,641 | 53,159 | 55,092 | 39,295 |
| Working capital turnover | 1.18 | 1.18 | 1.21 | 1.17 | 1.03 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $340,912K ÷ ($360,110K – $72,019K)
= 1.18
The working capital turnover ratio for National Presto Industries Inc has been relatively stable over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. In this case, the company has consistently achieved a ratio ranging from 1.03 to 1.21, with the highest value of 1.21 in December 31, 2021.
A working capital turnover ratio of 1.18 in December 31, 2023 and December 31, 2022 suggests that for each dollar of working capital invested, the company generates $1.18 in revenue. This implies that National Presto Industries Inc has been effectively managing its working capital to support its sales activities. The stable nature of the ratio over the years indicates a consistent performance in this aspect of the company's financial management.
Overall, the consistent working capital turnover ratio of National Presto Industries Inc reflects a sound operational efficiency in utilizing its working capital resources to drive sales revenue generation.
Peer comparison
Dec 31, 2023