nVent Electric PLC (NVT)
Working capital turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,378,900 | 3,314,100 | 3,194,500 | 3,090,800 | 2,994,600 | 2,923,100 | 2,877,800 | 2,790,500 | 2,688,000 | 2,561,200 | 2,414,500 | 2,289,800 | 2,156,000 | 2,000,600 | 1,970,800 | 2,016,300 | 2,063,700 | 2,153,500 | 2,170,000 | 2,171,400 |
| Total current assets | US$ in thousands | 1,422,700 | 1,373,900 | 1,336,100 | 1,299,900 | 1,296,100 | 1,251,800 | 1,229,200 | 1,212,800 | 1,068,300 | 964,900 | 911,500 | 889,700 | 902,500 | 799,000 | 764,400 | 816,000 | 883,100 | 885,800 | 798,700 | 806,400 |
| Total current liabilities | US$ in thousands | 654,100 | 690,300 | 733,600 | 659,400 | 620,600 | 601,300 | 649,500 | 645,000 | 612,100 | 588,300 | 636,300 | 571,200 | 535,800 | 463,800 | 450,000 | 409,900 | 386,200 | 409,200 | 462,200 | 437,300 |
| Working capital turnover | 4.40 | 4.85 | 5.30 | 4.83 | 4.43 | 4.49 | 4.96 | 4.91 | 5.89 | 6.80 | 8.77 | 7.19 | 5.88 | 5.97 | 6.27 | 4.97 | 4.15 | 4.52 | 6.45 | 5.88 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,378,900K ÷ ($1,422,700K – $654,100K)
= 4.40
nVent Electric PLC's working capital turnover has shown variability over the past several quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
From the data provided, we can observe that the working capital turnover ratio ranged from a low of 4.15 to a high of 8.77 during the period under review. Generally, a higher working capital turnover ratio indicates that the company is efficiently managing its working capital to generate sales.
The trend in the working capital turnover ratio for nVent Electric PLC shows fluctuations, with some periods showing higher ratios than others. The company experienced a significant increase in the working capital turnover ratio from the end of 2021 to mid-2022, peaking at 8.77. This indicates a period of strong efficiency in utilizing working capital to generate sales.
However, the ratio decreased in subsequent quarters but continued to remain above the 4.0 level, demonstrating a consistent level of efficiency in managing working capital to support sales activities.
Overall, the trend in nVent Electric PLC's working capital turnover ratio suggests that the company has been effectively managing its working capital to support its sales operations, though there have been fluctuations in efficiency over time. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management performance.
Peer comparison
Jun 30, 2024