Nexstar Broadcasting Group Inc (NXST)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,407,000	4,933,000	5,211,000	4,648,370	4,501,270
Total current assets	US$ in thousands	1,297,000	1,466,000	1,614,500	1,412,720	1,209,980
Total current liabilities	US$ in thousands	783,000	961,000	893,200	787,294	730,888
Working capital turnover		10.52	9.77	7.22	7.43	9.40

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,407,000K ÷ ($1,297,000K – $783,000K)
= 10.52

The working capital turnover ratio of Nexstar Broadcasting Group Inc has shown fluctuations over the last five years. It was at 9.40 in December 2020, decreased to 7.43 in December 2021, and further dropped to 7.22 in December 2022. However, the ratio rebounded in December 2023 to 9.77 and increased significantly to 10.52 in December 2024.

A higher working capital turnover ratio generally indicates effective utilization of working capital to generate sales. The uptrend from December 2023 to December 2024 suggests an improvement in efficiency in managing working capital to support revenue generation. This could be attributed to better inventory management, accounts receivable collection, or accounts payable management.

Despite the fluctuations, Nexstar Broadcasting Group Inc's working capital turnover ratio has been relatively strong, indicating the company's ability to efficiently convert working capital into revenue over the years. It would be essential for the company to maintain this positive trend and continue optimizing its working capital management strategies to support sustainable growth and profitability.