Enviri Corporation (NVRI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,342,640 | 2,069,220 | 1,889,060 | 1,848,400 | 1,863,860 |
| Total current assets | US$ in thousands | 710,525 | 827,356 | 767,735 | 874,973 | 815,823 |
| Total current liabilities | US$ in thousands | 566,382 | 655,233 | 597,281 | 601,391 | 537,955 |
| Working capital turnover | 16.25 | 12.02 | 11.08 | 6.76 | 6.71 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,342,640K ÷ ($710,525K – $566,382K)
= 16.25
Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Enviri Corporation, the working capital turnover has shown a consistent upward trend over the past five years.
In December 31, 2020, the working capital turnover was 6.71, indicating that for every dollar of working capital, Enviri generated $6.71 in sales. This ratio improved slightly to 6.76 by December 31, 2021.
A significant improvement was seen in the following years, with the ratio increasing to 11.08 by December 31, 2022, 12.02 by December 31, 2023, and a substantial 16.25 by December 31, 2024.
This progression indicates that Enviri Corporation has been able to efficiently manage its working capital to drive higher sales volumes, potentially signaling improved operational efficiency and effectiveness in utilizing its current assets to support revenue generation. The increasing trend in working capital turnover is generally a positive indicator of the company's management of resources to drive business growth.