Enviri Corporation (NVRI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,069,220 | 1,889,060 | 1,848,400 | 1,534,030 | 1,204,370 |
| Total current assets | US$ in thousands | 827,356 | 767,735 | 874,973 | 815,823 | 652,812 |
| Total current liabilities | US$ in thousands | 655,233 | 597,281 | 601,391 | 537,955 | 464,894 |
| Working capital turnover | 12.02 | 11.08 | 6.76 | 5.52 | 6.41 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,069,220K ÷ ($827,356K – $655,233K)
= 12.02
Enviri Corp's working capital turnover has exhibited a consistent upward trend over the past five years, indicating an improvement in the efficiency of its working capital management. The company generated $12.02 in revenue for each dollar of working capital in 2023, compared to $11.08 in 2022, $6.76 in 2021, $6.71 in 2020, and $8.00 in 2019.
This upward trend suggests that Enviri Corp has been able to optimize its working capital more effectively to support its operational activities and generate revenue. A higher working capital turnover ratio indicates that the company is efficiently utilizing its current assets to generate sales, which is a positive sign of financial health.
Overall, Enviri Corp's improving working capital turnover ratio reflects its ability to manage its working capital efficiently over the years, which can lead to enhanced profitability and sustainability in the long run.