nVent Electric PLC (NVT)
Working capital turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,297,200 | 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 |
| Total current assets | US$ in thousands | 1,418,700 | 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 |
| Total current liabilities | US$ in thousands | 776,200 | 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 |
| Working capital turnover | 5.13 | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,297,200K ÷ ($1,418,700K – $776,200K)
= 5.13
nVent Electric PLC's working capital turnover has displayed fluctuations over the past several periods. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.
In the most recent period ending September 30, 2024, the working capital turnover stood at 5.13, indicating that, on average, nVent Electric PLC generated approximately $5.13 in sales revenue for every $1 of working capital invested. This suggests a relatively efficient utilization of working capital to drive sales.
Looking at the trend over the past few periods, there is a fluctuation in the working capital turnover ratio. It decreased from a peak of 8.77 in March 2022 to a low of 4.15 in September 2020 before experiencing a general upward trend to its current level of 5.13 in September 2024.
The fluctuations in the working capital turnover ratio could be due to various factors such as changes in sales, inventory management, payment terms with suppliers, or the management of receivables. It is important for nVent Electric PLC to closely monitor and manage its working capital efficiency to ensure optimal utilization of resources and support sustainable growth in sales revenue.
Peer comparison
Sep 30, 2024