NV5 Global Inc (NVEE)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,276,230 | 1,126,510 | 1,010,090 | 941,231 | 506,663 |
| Total current assets | US$ in thousands | 329,064 | 290,676 | 303,970 | 288,876 | 251,200 |
| Total current liabilities | US$ in thousands | 159,419 | 160,894 | 163,951 | 136,186 | 114,358 |
| Working capital turnover | 7.52 | 8.68 | 7.21 | 6.16 | 3.70 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,276,230K ÷ ($329,064K – $159,419K)
= 7.52
The working capital turnover ratio of NV5 Global Inc has shown a fluctuating trend over the past five years. The ratio was highest in 2022 at 8.68 and lowest in 2019 at 3.70. This ratio indicates how efficiently the company is using its working capital to generate sales revenue.
A higher working capital turnover ratio suggests that the company is effectively managing its working capital to support its operations and generate revenue. It indicates that the company is able to generate sales more efficiently with less investment in working capital.
Conversely, a lower working capital turnover ratio may suggest inefficiencies in working capital management, potentially indicating that the company is tying up more capital in its operations relative to the sales being generated.
Based on the trend observed, it seems that NV5 Global Inc has generally been improving its efficiency in utilizing working capital to support its sales over the years, with some fluctuations in between. This improving trend could be a positive sign of enhanced operational efficiency and effective management of working capital by the company.
Peer comparison
Dec 31, 2023