NV5 Global Inc (NVEE)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 483,233 | 861,739 | 786,778 | 706,706 | 659,296 |
| Total current assets | US$ in thousands | 411,011 | 329,064 | 290,676 | 303,970 | 288,876 |
| Total current liabilities | US$ in thousands | 210,254 | 159,419 | 160,894 | 163,951 | 136,186 |
| Working capital turnover | 2.41 | 5.08 | 6.06 | 5.05 | 4.32 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $483,233K ÷ ($411,011K – $210,254K)
= 2.41
The working capital turnover for NV5 Global Inc has shown variability over the past five years. In 2020, the working capital turnover was 4.32, indicating that the company generated $4.32 in revenue for every dollar of working capital. Subsequently, in 2021, the turnover improved to 5.05, suggesting more efficient utilization of working capital to generate revenue.
The trend continued positively in 2022, with a working capital turnover of 6.06, signifying further enhancement in the company's ability to derive revenue from its working capital. However, in 2023, the turnover slightly decreased to 5.08, indicating a possible temporary slowdown in working capital efficiency.
The most significant deviation was observed in 2024, where the working capital turnover decreased substantially to 2.41. This sharp decline could suggest challenges in efficiently utilizing working capital to generate revenue during that period.
Overall, the working capital turnover ratios suggest that NV5 Global Inc has generally been effective in converting its working capital into revenue, although fluctuations in the ratio indicate the need for continued monitoring and potential improvements in working capital management practices.
Peer comparison
Dec 31, 2024