nVent Electric PLC (NVT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,195,600 | 2,877,800 | 2,414,500 | 1,962,200 | 2,159,300 |
| Total current assets | US$ in thousands | 1,336,100 | 1,229,200 | 911,500 | 764,400 | 798,700 |
| Total current liabilities | US$ in thousands | 733,600 | 649,500 | 636,300 | 450,000 | 462,200 |
| Working capital turnover | 5.30 | 4.96 | 8.77 | 6.24 | 6.42 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,195,600K ÷ ($1,336,100K – $733,600K)
= 5.30
nVent Electric plc had a working capital turnover ratio of 5.42 in 2023, which indicates that the company generated $5.42 in revenue for every $1 of working capital invested. This represents an increase compared to the ratio in 2022, where the turnover was 5.02. The trend over the past five years reflects some fluctuations, with a peak in 2021 at 8.95, followed by a decrease in 2022 and a subsequent recovery in 2023.
A working capital turnover ratio above 1 indicates efficient utilization of working capital to generate sales. nVent Electric plc's ratios above 5 in recent years suggest that the company has been effectively managing its working capital to support its operations and generate revenue. However, it is essential to consider industry benchmarks and other financial metrics to gain a comprehensive understanding of nVent Electric's overall financial performance and efficiency.
Peer comparison
Dec 31, 2023