Pentair PLC (PNR)
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 | 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 | 2,957,200 | 2,942,500 | 2,940,300 | 2,921,400 |
| Total current assets | US$ in thousands | 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 | 1,061,900 | 1,002,600 | 1,041,500 | 1,251,600 |
| Total current liabilities | US$ in thousands | 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 | 749,000 | 694,200 | 710,200 | 705,300 |
| Working capital turnover | 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 | 9.45 | 9.54 | 8.88 | 5.35 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,987,100K ÷ ($1,569,000K – $949,600K)
= 6.44
The working capital turnover for Pentair plc has displayed some variability over the past eight quarters. The ratio indicates how efficiently the company is using its working capital to generate revenue.
In Q1 2022, the working capital turnover was 7.39, which decreased in Q2 2022 to 9.89, showing a substantial improvement in efficiency. This positive trend continued into Q3 2022 with a further increase to 8.89. However, there was a slight decline in Q4 2022 to 8.32.
Moving into 2023, the working capital turnover ratio remained relatively consistent in Q1 2023 at 5.43, suggesting a moderate decline in efficiency compared to previous quarters. This was followed by a significant improvement in Q2 2023, with a ratio of 8.18, indicating a more optimal utilization of working capital. Q3 2023 saw a further increase to 8.29, continuing the positive trend.
The most recent data point in Q4 2023 shows a working capital turnover of 6.63, which is lower than the previous quarter but still reflects a relatively efficient use of working capital to generate revenue.
Overall, the working capital turnover of Pentair plc has shown fluctuations over the quarters, but the general trend indicates a reasonable level of efficiency in managing working capital to support business operations and revenue generation. Tracking this ratio over time can provide insights into the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023