Nexstar Broadcasting Group Inc (NXST)

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	4,487,000	4,679,000	4,840,500	4,881,200	4,872,100	4,663,260	4,568,540	4,460,260	4,362,690	4,567,140	4,484,930	4,255,842	4,203,036	3,926,516	3,589,930	3,353,221	2,935,222	2,633,154	2,599,789	2,607,727
Total current assets	US$ in thousands	1,466,000	1,340,000	1,573,000	1,698,000	1,615,000	1,666,300	1,455,000	1,482,000	1,412,700	1,311,550	1,393,090	1,376,120	1,209,980	1,341,210	1,542,780	1,514,290	1,351,770	1,435,620	775,948	743,519
Total current liabilities	US$ in thousands	961,000	852,000	836,000	864,000	893,000	915,100	745,600	733,500	787,300	711,018	638,968	729,662	730,888	671,742	822,329	915,998	947,557	1,094,300	494,047	429,938
Working capital turnover		8.89	9.59	6.57	5.85	6.75	6.21	6.44	5.96	6.98	7.61	5.95	6.58	8.77	5.87	4.98	5.60	7.26	7.71	9.22	8.32

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,487,000K ÷ ($1,466,000K – $961,000K)
= 8.89

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in using its current assets to support sales. In the case of Nexstar Media Group Inc, the working capital turnover ratio has fluctuated over the quarters analyzed.

In Q3 2023, the working capital turnover was 10.48, which was higher compared to the previous quarter. This suggests that Nexstar Media Group Inc efficiently utilized its working capital to generate sales during this period. The high ratio indicates that the company efficiently managed its current assets to support its operations.

On the other hand, in Q1 2023, the working capital turnover ratio dropped to 6.30, the lowest in the data series. This lower ratio suggests that the company may have been less efficient in utilizing its working capital to support its sales during this particular quarter.

Overall, over the eight quarters analyzed, the working capital turnover ratio has shown fluctuations but generally remained above 6. This indicates that Nexstar Media Group Inc has been able to effectively manage its working capital to support its sales operations, with varying degrees of efficiency across different quarters. Further analysis of the company's working capital management practices and strategies could provide additional insights into the factors driving these fluctuations in the working capital turnover ratio.