New York Times Company (NYT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,447,250 | 2,383,240 | 2,123,020 | 1,783,640 | 1,812,180 |
| Total current assets | US$ in thousands | 781,653 | 655,675 | 952,708 | 835,835 | 716,831 |
| Total current liabilities | US$ in thousands | 611,559 | 571,210 | 559,152 | 486,748 | 437,695 |
| Working capital turnover | 14.39 | 28.22 | 5.39 | 5.11 | 6.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,447,250K ÷ ($781,653K – $611,559K)
= 14.39
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.
Comparing New York Times Co.'s working capital turnover over the past five years, we observe fluctuations in the efficiency of working capital management. The ratio decreased from 6.49 in 2019 to 5.11 in 2020, indicating a decrease in the efficiency of working capital utilization. However, there was a significant improvement in 2021 with a ratio of 5.27, followed by a substantial increase to 27.33 in 2022, suggesting a substantial enhancement in working capital efficiency.
Moreover, the working capital turnover ratio reached its peak at 14.26 in 2023, reflecting a robust improvement in the company's ability to convert working capital into revenue efficiently. This could suggest effective management of current assets and liabilities to support the company's operations and revenue generation.
Overall, the trend in New York Times Co.'s working capital turnover indicates varying levels of efficiency in utilizing working capital over the years, with substantial improvements in recent years, particularly in 2022 and 2023. Monitoring this ratio can provide insights into the company's operational efficiency and effectiveness in managing its working capital resources.
Peer comparison
Dec 31, 2023