Owens Corning Inc (OC)
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 | 9,599,000 | 9,515,000 | 9,565,000 | 9,603,000 | 9,618,000 | 9,473,000 | 9,157,000 | 8,795,000 | 8,364,000 | 8,166,000 | 7,857,000 | 7,243,000 | 6,929,000 | 6,822,000 | 6,801,000 | 7,094,000 | 7,160,000 | 7,192,000 | 7,127,000 | 7,033,000 |
| Total current assets | US$ in thousands | 3,917,000 | 3,949,000 | 3,791,000 | 3,593,000 | 3,556,000 | 3,567,000 | 3,689,000 | 3,431,000 | 3,097,000 | 3,143,000 | 3,124,000 | 2,738,000 | 2,606,000 | 2,633,000 | 2,604,000 | 2,332,000 | 2,061,000 | 2,130,000 | 2,239,000 | 2,333,000 |
| Total current liabilities | US$ in thousands | 2,324,000 | 1,826,000 | 1,832,000 | 1,933,000 | 2,104,000 | 2,014,000 | 1,974,000 | 1,999,000 | 1,697,000 | 1,686,000 | 1,637,000 | 1,467,000 | 1,440,000 | 1,351,000 | 1,393,000 | 1,430,000 | 1,329,000 | 1,261,000 | 1,325,000 | 1,275,000 |
| Working capital turnover | 6.03 | 4.48 | 4.88 | 5.78 | 6.62 | 6.10 | 5.34 | 6.14 | 5.97 | 5.60 | 5.28 | 5.70 | 5.94 | 5.32 | 5.62 | 7.86 | 9.78 | 8.28 | 7.80 | 6.65 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,599,000K ÷ ($3,917,000K – $2,324,000K)
= 6.03
Owens Corning's working capital turnover has fluctuated over the past eight quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is generating more revenue with less investment in working capital.
In Q4 2023, the working capital turnover ratio was 6.07, which was higher compared to the ratios in the preceding three quarters. This suggests that Owens Corning was able to generate more sales revenue relative to its investment in working capital in Q4 2023.
Looking at the trend over the past two years, Owens Corning's working capital turnover has generally stayed above 5, indicating a consistent level of efficiency in utilizing its working capital to generate sales revenue. However, there have been fluctuations in the ratio, with the lowest ratio seen in Q2 2022 at 5.42 and the highest in Q4 2022 at 6.72.
Overall, Owens Corning's working capital turnover ratio demonstrates a relatively stable and efficient use of working capital to generate sales revenue over the analyzed period. Further analysis and comparison to industry peers could provide more insights into the company's working capital management.