Envista Holdings Corp (NVST)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,494,900 | 2,534,300 | 2,549,200 | 2,561,100 | 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 | 1,788,300 | 1,797,000 | 1,821,900 | 1,771,900 | 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 |
| Total current liabilities | US$ in thousands | 878,700 | 865,500 | 821,400 | 781,300 | 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 |
| Working capital turnover | 2.74 | 2.72 | 2.55 | 2.59 | 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, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,494,900K ÷ ($1,788,300K – $878,700K)
= 2.74
The working capital turnover ratio represents how efficiently a company is utilizing its working capital to generate revenue. It is calculated by dividing net sales by the average working capital over a certain period. The trend of Envista Holdings Corp's working capital turnover over the provided periods shows some fluctuations.
The working capital turnover ratio for the company ranged from a high of 84.17 in March 31, 2021, to a low of 2.55 in June 30, 2024. The ratio indicates that the company's working capital was turned over 84.17 times into revenue in March 31, 2021.
Assessing the trend, the working capital turnover ratio experienced fluctuations throughout the periods, reaching its peak in March 31, 2021, and then declining significantly in the subsequent periods until June 30, 2024. This fluctuation might suggest changes in the company's operating efficiency, sales volume, or management of working capital components such as inventory, accounts receivable, and accounts payable.
In general, a higher working capital turnover ratio indicates effective management of working capital and efficient utilization of resources to generate sales. Conversely, a lower ratio may suggest inefficiencies in working capital management or challenges in converting working capital into revenue.
Therefore, it is essential for Envista Holdings Corp to closely monitor its working capital turnover ratio and identify factors driving the fluctuations to optimize working capital efficiency and overall financial performance.
Peer comparison
Dec 31, 2024