PHINIA Inc. (PHIN)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,445,000 | 3,494,000 | 3,542,000 |
| Total current assets | US$ in thousands | 1,841,000 | 1,976,000 | 1,917,000 |
| Total current liabilities | US$ in thousands | 969,000 | 1,022,000 | 1,122,000 |
| Working capital turnover | 3.95 | 3.66 | 4.46 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,445,000K ÷ ($1,841,000K – $969,000K)
= 3.95
Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales revenue.
Based on the data provided for PHINIA Inc.:
- As of March 31, 2024, the working capital turnover ratio was 4.46.
- By September 30, 2024, the ratio decreased to 3.66.
- As of December 31, 2024, the ratio slightly improved to 3.95.
A higher working capital turnover ratio indicates that the company is effectively using its working capital to support sales growth. The decline in the ratio from March to September suggests a decrease in the efficiency of working capital management during that period. However, the small improvement by the end of December indicates a partial recovery.
Overall, PHINIA Inc. should continue to monitor and manage its working capital effectively to ensure optimal utilization and maintain a healthy level of efficiency in supporting sales operations.
Peer comparison
Dec 31, 2024