Enpro Industries (NPO)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,013,100 | 1,047,200 | 1,078,000 | 1,139,100 | 1,189,800 | 1,130,600 | 1,139,000 | 1,108,000 | 1,061,700 | 1,115,600 | 1,100,800 | 1,049,300 | 1,052,000 | 1,071,900 | 1,180,600 | 1,324,500 | 1,406,800 | 1,501,700 | 1,516,900 | 1,523,500 |
| Total current assets | US$ in thousands | 650,300 | 636,500 | 754,700 | 715,300 | 684,200 | 650,600 | 629,000 | 692,100 | 804,700 | 709,500 | 646,100 | 598,500 | 579,000 | 816,500 | 789,200 | 781,700 | 749,500 | 697,600 | 731,400 | 738,900 |
| Total current liabilities | US$ in thousands | 196,400 | 195,100 | 187,100 | 199,900 | 211,500 | 253,300 | 330,100 | 391,700 | 386,300 | 222,400 | 216,500 | 203,000 | 202,000 | 243,100 | 261,400 | 281,300 | 313,600 | 306,800 | 289,700 | 278,500 |
| Working capital turnover | 2.23 | 2.37 | 1.90 | 2.21 | 2.52 | 2.85 | 3.81 | 3.69 | 2.54 | 2.29 | 2.56 | 2.65 | 2.79 | 1.87 | 2.24 | 2.65 | 3.23 | 3.84 | 3.43 | 3.31 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,013,100K ÷ ($650,300K – $196,400K)
= 2.23
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates better efficiency in utilizing working capital.
Looking at the trend of Enpro Inc's working capital turnover ratio over the past 8 quarters, we observe fluctuations in the ratio. In the most recent quarter (Q4 2023), the working capital turnover ratio was 2.33, slightly higher than the previous quarter (Q3 2023) at 2.19. This indicates that Enpro Inc was able to generate 2.33 times its revenue using its working capital in Q4 2023.
However, compared to the same quarter in the previous year (Q4 2022), there has been no change in the working capital turnover ratio, which stood at 2.33. This suggests that Enpro Inc's efficiency in utilizing working capital to generate sales has remained consistent over this time period.
In general, a working capital turnover ratio above 1 indicates that the company is effectively using its working capital to generate sales. Enpro Inc's average working capital turnover ratio over the past 8 quarters is 2.64, demonstrating a reasonably efficient utilization of its working capital.
It is important for Enpro Inc to monitor this ratio regularly to ensure that it is effectively managing its working capital and maximizing its sales generation potential.