Owens Corning Inc (OC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,886,000 | 10,361,000 | 9,794,000 | 9,568,000 | 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 |
| Total current assets | US$ in thousands | 3,378,000 | 3,863,000 | 3,719,000 | 3,981,000 | 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 |
| Total current liabilities | US$ in thousands | 2,297,000 | 2,682,000 | 2,722,000 | 2,268,000 | 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 |
| Working capital turnover | 10.07 | 8.77 | 9.82 | 5.59 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,886,000K ÷ ($3,378,000K – $2,297,000K)
= 10.07
Owens Corning Inc's working capital turnover has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio represents how effectively a company is managing its working capital to generate revenue. A higher ratio indicates efficient utilization of working capital.
The working capital turnover ratio started at 7.86 on March 31, 2020, and decreased gradually over the next few quarters, reaching its lowest point of 4.48 on September 30, 2023. This decline may suggest inefficiencies in the company's working capital management during this period.
However, there was an improvement in the ratio in the subsequent quarters, with the ratio increasing to 10.07 on December 31, 2024. This substantial increase indicates a more efficient use of working capital in generating sales revenue.
Overall, Owens Corning Inc's working capital turnover ratio has shown variability, but with a recent upward trend. It would be essential for stakeholders to monitor this ratio continuously to ensure effective working capital management and sustainable operational performance.