PPG Industries Inc (PPG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,845,000 | 18,246,000 | 17,652,000 | 16,802,000 | 13,834,000 |
| Total current assets | US$ in thousands | 6,557,000 | 7,431,000 | 7,173,000 | 6,740,000 | 6,798,000 |
| Total current liabilities | US$ in thousands | 5,014,000 | 5,054,000 | 4,721,000 | 4,745,000 | 4,816,000 |
| Working capital turnover | 10.27 | 7.68 | 7.20 | 8.42 | 6.98 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,845,000K ÷ ($6,557,000K – $5,014,000K)
= 10.27
PPG Industries Inc's working capital turnover has shown a positive trend over the years. From 2020 to 2024, the working capital turnover ratio has increased from 6.98 to 10.27, indicating that the company is effectively utilizing its working capital to generate sales revenue.
A higher working capital turnover ratio suggests that the company is efficient in managing its working capital resources to support its operations and generate revenue. This improved efficiency could be attributed to better management of inventory, accounts receivable, and accounts payable.
Overall, the increasing trend in PPG Industries Inc's working capital turnover reflects positively on the company's operational efficiency and indicates a strong ability to generate sales revenue relative to its working capital investment.
Peer comparison
Dec 31, 2024