Pentair PLC (PNR)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,995,100 | 3,987,100 | 4,061,100 | 3,754,700 | 2,994,800 |
| Total current assets | US$ in thousands | 1,436,100 | 1,569,000 | 1,558,500 | 1,304,000 | 975,100 |
| Total current liabilities | US$ in thousands | 895,100 | 949,600 | 1,063,100 | 1,051,700 | 772,500 |
| Working capital turnover | 7.38 | 6.44 | 8.20 | 14.88 | 14.78 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,995,100K ÷ ($1,436,100K – $895,100K)
= 7.38
To analyze Pentair PLC's working capital turnover, we calculated the ratio for the period from December 31, 2020, to December 31, 2024. The working capital turnover reflects how efficiently the company is utilizing its working capital to generate sales.
Initially, in 2020, the working capital turnover was 14.78, indicating that Pentair was effectively utilizing its working capital to generate sales. This ratio slightly increased to 14.88 by the end of 2021, reflecting continued efficiency in working capital management.
However, a significant decline was observed in the subsequent years. By the end of 2022, the working capital turnover dropped to 8.20, signaling a decrease in the efficiency of working capital utilization. This decline continued in 2023, with the ratio further decreasing to 6.44, suggesting potential issues with managing the working capital effectively.
In 2024, there was a slight improvement in the working capital turnover to 7.38, indicating a small positive shift in the utilization of working capital compared to the previous year. However, the ratio remained below the levels seen in 2020 and 2021, indicating ongoing challenges in optimizing working capital efficiency.
Overall, the trend in Pentair PLC's working capital turnover shows fluctuations over the specified period, with a notable decline in recent years. This may indicate the need for the company to focus on improving its working capital management practices to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2024