ODP Corp (ODP)
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 | 7,821,000 | 8,121,000 | 8,288,000 | 8,415,000 | 8,480,000 | 8,416,000 | 8,417,000 | 8,667,000 | 8,853,000 | 9,099,000 | 9,460,000 | 9,315,000 | 9,663,000 | 9,883,000 | 10,111,000 | 10,541,000 | 10,580,000 | 10,727,000 | 10,822,000 | 10,854,000 |
| Total current assets | US$ in thousands | 1,678,000 | 1,754,000 | 1,738,000 | 1,813,000 | 1,910,000 | 2,108,000 | 2,011,000 | 2,053,000 | 2,389,000 | 2,876,000 | 2,411,000 | 2,444,000 | 2,355,000 | 2,480,000 | 2,525,000 | 2,700,000 | 3,447,000 | 3,460,000 | 3,389,000 | 3,502,000 |
| Total current liabilities | US$ in thousands | 1,693,000 | 1,760,000 | 1,782,000 | 1,845,000 | 1,859,000 | 1,893,000 | 1,903,000 | 1,966,000 | 2,265,000 | 2,181,000 | 2,100,000 | 2,129,000 | 2,093,000 | 2,287,000 | 2,135,000 | 2,345,000 | 3,094,000 | 3,156,000 | 3,181,000 | 3,233,000 |
| Working capital turnover | — | — | — | — | 166.27 | 39.14 | 77.94 | 99.62 | 71.40 | 13.09 | 30.42 | 29.57 | 36.88 | 51.21 | 25.93 | 29.69 | 29.97 | 35.29 | 52.03 | 40.35 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,821,000K ÷ ($1,678,000K – $1,693,000K)
= —
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in turning working capital into sales.
Based on the data provided for ODP Corp, we can observe fluctuations in the working capital turnover ratio over the periods reported. In the most recent period, the working capital turnover was not available, but looking at the historical data, there is a notable improvement in efficiency in managing working capital from 2019 to 2022.
In 2019, the ratio ranged from 29.69 to 52.03, showing a moderate level of efficiency. However, in 2020, the ratio increased to a range of 25.93 to 51.21, indicating an improvement in utilizing working capital to generate sales. This trend continued into 2021 and 2022, with ratios ranging from 30.42 to 77.94 and from 39.14 to 166.27, respectively.
Overall, the trend in the working capital turnover ratio suggests that ODP Corp has been becoming more efficient in managing its working capital to support its sales activities, especially in more recent years. Further analysis would be needed to understand the specific factors driving these changes and to assess the sustainability of this improved efficiency over time.
Peer comparison
Dec 31, 2023