Envista Holdings Corp (NVST)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,566,500 | 2,569,100 | 2,508,900 | 1,929,100 | 2,284,800 |
| Total current assets | US$ in thousands | 1,743,700 | 1,424,600 | 1,835,800 | 1,590,600 | 1,001,900 |
| Total current liabilities | US$ in thousands | 780,800 | 1,236,700 | 1,208,200 | 1,684,700 | 709,200 |
| Working capital turnover | 2.67 | 13.67 | 4.00 | — | 7.81 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,566,500K ÷ ($1,743,700K – $780,800K)
= 2.67
Working capital turnover is a financial ratio that measures a company's efficiency in utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is able to efficiently use its current assets to support its operations.
Envista Holdings Corp's working capital turnover has fluctuated over the past five years, ranging from a low of 2.67 in 2023 to a high of 13.67 in 2022. In 2021, the ratio was 4.00, and there is missing data for 2020. The significant increase in the ratio from 2021 to 2022 suggests that the company improved its efficiency in managing its working capital to generate revenue.
However, the sharp decline in the ratio in 2023 indicates a potential decrease in efficiency in utilizing working capital compared to the previous year. Further analysis is needed to understand the factors contributing to this decrease and to assess the overall trend in Envista Holdings Corp's working capital management.
Peer comparison
Dec 31, 2023