Envista Holdings Corp (NVST)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,507,800 | 2,566,500 | 2,569,100 | 2,508,900 | 1,929,100 |
| Total current assets | US$ in thousands | 1,788,300 | 1,743,700 | 1,424,600 | 1,835,800 | 1,590,600 |
| Total current liabilities | US$ in thousands | 878,700 | 780,800 | 1,236,700 | 1,208,200 | 1,684,700 |
| Working capital turnover | 2.76 | 2.67 | 13.67 | 4.00 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,507,800K ÷ ($1,788,300K – $878,700K)
= 2.76
Envista Holdings Corp's working capital turnover has shown fluctuations over the past five years. In 2020, the working capital turnover was not available. However, in 2021, it improved significantly to 4.00, indicating that the company generated $4.00 of revenue for every dollar of working capital invested.
The ratio further increased in 2022 to 13.67, reflecting a substantial enhancement in the efficiency of utilizing working capital to generate sales. This significant improvement suggests that Envista Holdings Corp effectively managed its working capital and optimized its operational efficiency.
In 2023, the working capital turnover decreased to 2.67, indicating a decrease in the efficiency of working capital utilization compared to the previous year. The decline in this ratio may suggest potential challenges in managing working capital or a decrease in sales relative to the investment in working capital.
For 2024, the working capital turnover slightly increased to 2.76, showing a slight improvement in efficiency compared to the previous year. However, the ratio remains below the levels seen in 2022.
Overall, Envista Holdings Corp's working capital turnover has displayed variability over the years, with notable improvements in 2021 and 2022 but a decrease in efficiency in 2023. It is important for the company to continue monitoring and managing its working capital effectively to ensure optimal operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2024