PPG Industries Inc (PPG)
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 | 15,845,000 | 18,030,000 | 18,099,000 | 18,177,000 | 18,246,000 | 18,081,000 | 17,905,000 | 17,724,000 | 17,652,000 | 17,657,000 | 17,561,000 | 17,229,000 | 16,802,000 | 16,369,000 | 15,682,000 | 14,338,000 | 13,834,000 | 13,749,000 | 13,890,000 | 14,899,000 |
| Total current assets | US$ in thousands | 6,557,000 | 7,913,000 | 7,784,000 | 7,671,000 | 7,431,000 | 7,552,000 | 8,068,000 | 8,193,000 | 7,173,000 | 7,490,000 | 7,756,000 | 7,627,000 | 6,740,000 | 7,300,000 | 7,446,000 | 7,339,000 | 6,798,000 | 7,002,000 | 7,077,000 | 7,066,000 |
| Total current liabilities | US$ in thousands | 5,014,000 | 4,996,000 | 5,225,000 | 4,943,000 | 5,054,000 | 5,100,000 | 5,416,000 | 4,868,000 | 4,721,000 | 4,926,000 | 5,165,000 | 5,172,000 | 4,745,000 | 5,463,000 | 5,488,000 | 5,120,000 | 4,816,000 | 4,613,000 | 5,234,000 | 5,195,000 |
| Working capital turnover | 10.27 | 6.18 | 7.07 | 6.66 | 7.68 | 7.37 | 6.75 | 5.33 | 7.20 | 6.89 | 6.78 | 7.02 | 8.42 | 8.91 | 8.01 | 6.46 | 6.98 | 5.76 | 7.54 | 7.96 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,845,000K ÷ ($6,557,000K – $5,014,000K)
= 10.27
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is able to efficiently generate sales using its working capital.
Based on the data provided for PPG Industries Inc, the working capital turnover ratio has fluctuated over the reported periods. The company experienced a peak in the ratio during December 31, 2024, with a value of 10.27, indicating a high level of efficiency in converting working capital into sales revenue.
However, there were also periods where the working capital turnover ratio decreased, such as during March 31, 2023, when the ratio dropped to 5.33. This suggests that the company may have faced challenges in efficiently utilizing its working capital during that period.
Overall, the trend in PPG Industries Inc's working capital turnover ratio shows variability, with some periods of high efficiency and others of decreased efficiency. It is important for the company to monitor and manage its working capital effectively to ensure optimal performance and profitability.
Peer comparison
Dec 31, 2024