Nexstar Broadcasting Group Inc (NXST)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,486,000	4,871,500	4,371,480	4,117,920	2,816,780
Total current assets	US$ in thousands	1,466,000	1,615,000	1,412,700	1,209,980	1,351,770
Total current liabilities	US$ in thousands	961,000	893,000	787,300	730,888	947,557
Working capital turnover		8.88	6.75	6.99	8.60	6.97

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,486,000K ÷ ($1,466,000K – $961,000K)
= 8.88

Nexstar Media Group Inc's working capital turnover has shown fluctuations over the past five years. The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales revenue.

In 2023, the working capital turnover ratio was 9.77, which suggests that Nexstar Media Group Inc generated approximately $9.77 in sales for every dollar of working capital invested. This represents an improvement from the previous year, as the ratio increased from 7.22 in 2022 to 9.77 in 2023.

Comparing the 2023 ratio to those of earlier years, it appears that the company's working capital efficiency has been relatively high, with ratios ranging from 7.43 to 9.40 in the preceding years. This indicates that Nexstar Media Group Inc has been effective in managing its working capital to drive sales growth.

Overall, the increasing trend in the working capital turnover ratio over the years signifies that Nexstar Media Group Inc has been improving its efficiency in converting working capital into sales revenue, which is a positive indication of the company's operational performance and financial health.