Owens Corning Inc (OC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,599,000 | 9,618,000 | 8,364,000 | 6,929,000 | 7,160,000 |
| Total current assets | US$ in thousands | 3,917,000 | 3,556,000 | 3,097,000 | 2,606,000 | 2,061,000 |
| Total current liabilities | US$ in thousands | 2,324,000 | 2,104,000 | 1,697,000 | 1,440,000 | 1,329,000 |
| Working capital turnover | 6.03 | 6.62 | 5.97 | 5.94 | 9.78 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,599,000K ÷ ($3,917,000K – $2,324,000K)
= 6.03
The working capital turnover ratio measures how efficiently a company is managing its working capital to generate sales revenue. Owens Corning's working capital turnover has shown some fluctuations over the past five years, ranging from 6.05 to 9.78.
A high working capital turnover ratio indicates that Owens Corning is effectively utilizing its working capital to support its operations and generate sales. However, the decreasing trend in the ratio over the years might suggest that the company is becoming slightly less efficient in managing its working capital in relation to its sales.
Overall, Owens Corning's average working capital turnover ratio over the five-year period is relatively healthy, indicating that the company is efficiently utilizing its working capital to support its sales activities. Further analysis in conjunction with other financial metrics would provide a more comprehensive understanding of Owens Corning's financial performance and operational efficiency.