Envista Holdings Corp (NVST)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,560,900 | 2,546,100 | 2,549,700 | 2,544,100 | 2,565,100 | 2,583,600 | 2,571,400 | 2,569,200 | 2,550,300 | 2,514,600 | 2,547,800 | 2,272,600 | 2,207,200 | 2,270,200 | |||
| Total current assets | US$ in thousands | 1,743,700 | 1,640,700 | 1,488,900 | 1,414,300 | 1,424,600 | 1,366,000 | 1,388,300 | 1,908,900 | 1,835,800 | 1,766,400 | 1,301,700 | 1,163,300 | 1,590,600 | 1,416,200 | 1,517,700 | 1,114,200 | 1,001,900 |
| Total current liabilities | US$ in thousands | 780,800 | 746,800 | 1,150,800 | 1,149,600 | 1,236,700 | 1,258,300 | 1,256,200 | 1,255,700 | 1,208,200 | 1,269,200 | 1,163,200 | 1,136,300 | 1,684,700 | 678,900 | 830,200 | 608,900 | 709,200 |
| Working capital turnover | 2.66 | 2.85 | 7.54 | 9.61 | 13.65 | 23.99 | 19.47 | 3.93 | 4.06 | 5.06 | 18.40 | 84.17 | — | 3.08 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,560,900K ÷ ($1,743,700K – $780,800K)
= 2.66
Envista Holdings Corp's working capital turnover has fluctuated over the past eight quarters, ranging from a low of 2.67 in Q4 2023 to a high of 21.92 in Q3 2022. The working capital turnover measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover indicates that the company is able to generate more sales revenue per unit of working capital.
The significant increase in the working capital turnover from Q4 2022 to Q3 2022 suggests a notable improvement in the company's working capital management efficiency during that period. However, the subsequent decrease in the ratio from Q3 2022 to Q4 2023 may indicate a potential decrease in the efficiency of working capital utilization, which would require further investigation.
Overall, Envista Holdings Corp's working capital turnover has shown variability, and it would be beneficial for stakeholders to monitor this ratio in conjunction with other financial metrics to assess the company's operational performance and financial health accurately.
Peer comparison
Dec 31, 2023