Pentair PLC (PNR)
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 | 3,995,100 | 3,977,100 | 3,992,500 | 3,975,700 | 3,987,100 | 4,062,100 | 4,108,400 | 4,090,100 | 4,061,100 | 4,097,400 | 4,011,500 | 3,888,400 | 3,754,700 | 3,572,200 | 3,401,500 | 3,173,700 | 3,017,800 | 2,977,000 | 2,892,100 | 2,978,300 |
| Total current assets | US$ in thousands | 1,436,100 | 1,489,100 | 1,563,500 | 1,748,600 | 1,569,000 | 1,499,400 | 1,570,000 | 1,766,700 | 1,558,500 | 1,562,500 | 1,462,600 | 1,541,700 | 1,304,000 | 1,249,500 | 1,107,300 | 1,208,500 | 975,100 | 963,500 | 1,001,700 | 1,339,600 |
| Total current liabilities | US$ in thousands | 895,100 | 928,800 | 950,400 | 919,300 | 949,600 | 1,001,900 | 1,060,600 | 1,001,600 | 1,063,100 | 1,100,500 | 1,056,100 | 1,014,400 | 1,051,700 | 1,016,000 | 931,100 | 823,900 | 772,500 | 818,900 | 750,600 | 682,800 |
| Working capital turnover | 7.38 | 7.10 | 6.51 | 4.79 | 6.44 | 8.17 | 8.07 | 5.35 | 8.20 | 8.87 | 9.87 | 7.37 | 14.88 | 15.30 | 19.30 | 8.25 | 14.90 | 20.59 | 11.52 | 4.53 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,995,100K ÷ ($1,436,100K – $895,100K)
= 7.38
The working capital turnover ratio measures how efficiently a company is managing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support its operations.
In the case of Pentair PLC, the working capital turnover has shown fluctuations over the reported periods. The ratio ranged from a low of 4.53 on March 31, 2020, to a high of 20.59 on September 30, 2020. This significant increase may indicate improved efficiency in utilizing working capital to generate sales during that period.
Subsequently, the ratio fluctuated but generally remained at relatively higher levels compared to the initial period, with occasional decreases indicating potential challenges in managing working capital effectively. For example, the ratio dropped to 4.79 on March 31, 2024, which suggests a potential inefficiency in utilizing working capital to support sales during that period.
Overall, the working capital turnover ratio for Pentair PLC has exhibited variability over the reported periods, indicating the company's changing efficiency in managing its working capital to drive sales revenue. Further analysis of the underlying factors contributing to these fluctuations would provide additional insights into the company's working capital management strategies.
Peer comparison
Dec 31, 2024