Enpro Industries (NPO)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,013,100 | 1,067,900 | 1,259,100 | 1,052,000 | 1,171,800 |
| Total current assets | US$ in thousands | 650,300 | 684,200 | 804,700 | 579,000 | 749,500 |
| Total current liabilities | US$ in thousands | 196,400 | 211,500 | 386,300 | 202,000 | 313,600 |
| Working capital turnover | 2.23 | 2.26 | 3.01 | 2.79 | 2.69 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,013,100K ÷ ($650,300K – $196,400K)
= 2.23
The working capital turnover ratio for Enpro Inc has been fluctuating over the past five years. In 2023 and 2022, the ratio remained consistent at 2.33, indicating that the company generated $2.33 in revenue for every dollar of working capital invested. This suggests that Enpro efficiently utilized its working capital to generate sales during these years.
In 2021, the working capital turnover increased to 3.42, reflecting a significant improvement in efficiency compared to the previous years. This indicates that Enpro was able to generate more sales with each dollar of working capital invested, showcasing effective management of its working capital resources.
In 2020 and 2019, the working capital turnover ratios were 2.85 and 2.77 respectively, indicating a relatively stable performance in utilizing working capital to drive sales during those years.
Overall, Enpro Inc's working capital turnover ratio has shown variability, with the company achieving higher efficiency in 2021 compared to the other years. This metric provides insights into how effectively the company is utilizing its working capital to generate revenue, with higher ratios generally indicative of better operational efficiency.