PPG Industries Inc (PPG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,119,000 | 17,539,000 | 16,913,000 | 13,780,000 | 15,135,000 |
| Total current assets | US$ in thousands | 7,431,000 | 7,173,000 | 6,774,000 | 6,798,000 | 6,170,000 |
| Total current liabilities | US$ in thousands | 5,054,000 | 4,721,000 | 4,766,000 | 4,831,000 | 4,375,000 |
| Working capital turnover | 7.62 | 7.15 | 8.42 | 7.01 | 8.43 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,119,000K ÷ ($7,431,000K – $5,054,000K)
= 7.62
The working capital turnover ratio for PPG Industries, Inc. has shown variability over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales over a given period.
In 2023, the working capital turnover ratio was 7.68, which means that for every $1 of working capital, PPG Industries generated $7.68 in sales. This indicates an improvement compared to 2022 when the ratio was 7.20. The increase in the ratio suggests that the company improved its efficiency in utilizing its working capital to generate revenue.
Looking at the historical trend, the working capital turnover ratio was highest in 2021 at 8.37 and lowest in 2020 at 7.03. This signifies that the company was most effective in converting its working capital into sales in 2021, while in 2020, the efficiency dipped slightly.
Overall, PPG Industries, Inc. has generally maintained a strong working capital turnover ratio over the past five years, indicating effective management of its working capital to drive sales. However, the fluctuations in the ratio over the years suggest some volatility in the company's working capital efficiency. It would be crucial for PPG Industries to continue monitoring and optimizing its working capital management to sustain its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023