Newell Brands Inc (NWL)
Working capital turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,824,000 | 8,126,000 | 8,321,000 | 8,682,000 | 9,281,000 | 9,801,000 | 10,341,000 | 10,501,000 | 10,403,000 | 10,161,000 | 10,057,000 | 9,530,000 | 9,197,000 | 9,635,400 | 9,421,500 | 9,419,900 | 9,220,300 | 8,547,100 | 8,413,200 | 8,503,900 |
| Total current assets | US$ in thousands | 3,354,000 | 3,748,000 | 3,839,000 | 4,055,000 | 4,052,000 | 5,148,000 | 4,757,000 | 4,411,000 | 4,352,000 | 4,616,000 | 4,655,000 | 4,385,000 | 4,628,000 | 4,704,000 | 4,286,000 | 3,917,000 | 4,110,000 | 5,468,400 | 7,061,700 | 7,516,100 |
| Total current liabilities | US$ in thousands | 2,897,000 | 3,019,000 | 3,060,000 | 3,291,000 | 3,078,000 | 4,108,000 | 4,630,000 | 3,183,000 | 3,317,000 | 3,709,000 | 3,776,000 | 3,363,000 | 3,621,000 | 3,108,000 | 2,917,000 | 2,951,000 | 2,978,000 | 3,684,200 | 3,135,800 | 3,551,600 |
| Working capital turnover | 17.12 | 11.15 | 10.68 | 11.36 | 9.53 | 9.42 | 81.43 | 8.55 | 10.05 | 11.20 | 11.44 | 9.32 | 9.13 | 6.04 | 6.88 | 9.75 | 8.15 | 4.79 | 2.14 | 2.15 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,824,000K ÷ ($3,354,000K – $2,897,000K)
= 17.12
The working capital turnover ratio for Newell Brands Inc has exhibited variability over the past eight quarters. In Q4 2023, the ratio stood at 17.80, indicating that the company generated $17.80 in revenue for every dollar of working capital invested during the quarter. This represented a significant increase compared to the previous quarter, where the ratio was 11.44.
The trend over the past year shows fluctuations in the working capital turnover ratio, with some quarters showing higher efficiency in utilizing working capital compared to others. Q2 2022 notably had an exceptionally high ratio of 82.79, which could be an outlier or potentially reflective of unique operational or financial circumstances during that period.
Overall, a higher working capital turnover ratio suggests that the company is efficiently managing its working capital to generate sales. However, it's essential to assess this ratio in conjunction with other financial metrics and qualitative factors to gain a holistic understanding of Newell Brands Inc's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023