PPG Industries Inc (PPG)

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 18,119,000 17,888,000 17,733,000 17,607,000 17,552,000 17,655,000 17,643,000 17,356,000 16,913,000 16,477,000 15,717,000 14,289,000 13,791,000 13,706,000 13,844,000 14,888,000 15,131,000 15,104,000 15,103,000 15,207,000
Total current assets US$ in thousands 7,431,000 7,552,000 8,068,000 8,193,000 7,173,000 7,490,000 7,756,000 7,627,000 6,774,000 7,300,000 7,446,000 7,339,000 6,798,000 7,002,000 7,077,000 7,066,000 6,170,000 6,817,000 6,707,000 6,409,000
Total current liabilities US$ in thousands 5,054,000 5,100,000 5,416,000 4,868,000 4,721,000 4,926,000 5,165,000 5,172,000 4,766,000 5,463,000 5,488,000 5,120,000 4,831,000 4,613,000 5,234,000 5,195,000 4,375,000 4,578,000 4,706,000 4,588,000
Working capital turnover 7.62 7.30 6.69 5.30 7.16 6.89 6.81 7.07 8.42 8.97 8.03 6.44 7.01 5.74 7.51 7.96 8.43 6.75 7.55 8.35

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (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. shows variations over the past eight quarters. The ratio indicates the company's ability to efficiently utilize its working capital to generate sales revenue.

In Q4 2023, the working capital turnover was 7.68, indicating that the company generated $7.68 in sales for every dollar of working capital invested during that period. This represents an increase from the previous quarter, where the ratio was 7.37.

The ratio has fluctuated within a relatively narrow range over the past two years, with a peak of 7.20 in Q4 2022 and a low of 5.33 in Q1 2023. This suggests that PPG Industries has generally been effective in managing its working capital to drive sales.

Overall, the trend in the working capital turnover ratio for PPG Industries shows some variability but indicates a consistent ability to efficiently convert working capital into sales across the quarters analyzed.


Peer comparison

Dec 31, 2023

Company name
Symbol
Working capital turnover
PPG Industries Inc
PPG
7.62
Axalta Coating Systems Ltd
AXTA
3.72
RPM International Inc
RPM
5.04