Newell Brands Inc (NWL)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,824,000 | 9,305,000 | 10,336,000 | 9,059,000 | 9,688,100 |
| Total current assets | US$ in thousands | 3,354,000 | 4,052,000 | 4,352,000 | 4,628,000 | 4,110,000 |
| Total current liabilities | US$ in thousands | 2,897,000 | 3,078,000 | 3,317,000 | 3,621,000 | 2,978,000 |
| Working capital turnover | 17.12 | 9.55 | 9.99 | 9.00 | 8.56 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,824,000K ÷ ($3,354,000K – $2,897,000K)
= 17.12
The working capital turnover of Newell Brands Inc has shown a varying trend over the past five years. In 2023, the working capital turnover ratio significantly improved to 17.80, indicating that the company effectively generated revenue relative to its working capital in that year. This suggests that Newell Brands efficiently utilized its working capital to generate sales during the period.
Comparing this to previous years, we observe fluctuations in the working capital turnover ratio. In 2022, the ratio was 9.71, indicating a decrease compared to 2023. However, in 2021 and 2020, there were improvements in the ratio at 11.21 and 9.32 respectively, although still lower than the 2023 figure. In 2019, the working capital turnover was at 8.58, showing a slight increase from 2020 but considerably lower than the 2023 performance.
Overall, the upward trend in the working capital turnover ratio since 2019 suggests that Newell Brands has been progressively enhancing its efficiency in utilizing working capital to support sales generation. However, it is essential to further analyze the company's operations and financial health to gain a more comprehensive understanding of its performance and prospects.
Peer comparison
Dec 31, 2023