PPL Corporation (PPL)
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 | 8,462,000 | 8,282,000 | 8,259,000 | 8,201,000 | 8,312,000 | 8,571,000 | 8,662,000 | 8,535,000 | 7,902,000 | 7,097,000 | 6,475,000 | 6,067,000 | 5,783,000 | 5,669,000 | 5,557,000 | 5,532,000 | 5,474,000 | 6,057,000 | 6,590,000 | 7,130,000 |
| Total current assets | US$ in thousands | 2,880,000 | 2,974,000 | 2,798,000 | 3,037,000 | 2,932,000 | 2,754,000 | 2,725,000 | 3,038,000 | 2,824,000 | 2,720,000 | 2,301,000 | 5,713,000 | 5,007,000 | 6,137,000 | 9,018,000 | 20,327,000 | 20,900,000 | 2,695,000 | 3,268,000 | 2,956,000 |
| Total current liabilities | US$ in thousands | 3,333,000 | 2,306,000 | 2,515,000 | 2,375,000 | 3,340,000 | 2,879,000 | 2,505,000 | 2,480,000 | 3,789,000 | 3,315,000 | 3,726,000 | 3,033,000 | 2,323,000 | 2,343,000 | 4,172,000 | 15,623,000 | 15,055,000 | 5,442,000 | 5,168,000 | 5,322,000 |
| Working capital turnover | — | 12.40 | 29.18 | 12.39 | — | — | 39.37 | 15.30 | — | — | — | 2.26 | 2.15 | 1.49 | 1.15 | 1.18 | 0.94 | — | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,462,000K ÷ ($2,880,000K – $3,333,000K)
= —
The working capital turnover ratio for PPL Corporation provides valuable insights into how efficiently the company is managing its working capital to generate sales. The ratio indicates the number of times a company's working capital is turned over in a given period.
For PPL Corporation, the working capital turnover ratio has shown fluctuations over the analyzed period. In the initial quarters of the available data, the company either did not provide data or had lower turnover ratios, suggesting a slower utilization of working capital to generate sales.
However, from March 31, 2021, there was a noticeable improvement in the working capital turnover ratio, indicating that the company was able to enhance its efficiency in managing working capital to support increased sales. This trend continued through June 30, 2022, with consistent or increasing turnover ratios until September 30, 2022.
The ratio sharply increased to 15.30 on March 31, 2023, signifying a significant improvement in the efficiency of the company in utilizing its working capital to drive sales. This exceptional ratio could be attributed to various factors such as improved inventory management, faster collection of receivables, or better payment terms with suppliers.
The subsequent quarters showed mixed results, with fluctuating turnover ratios observed in June 30, 2023, and December 31, 2024. The significant drop in the ratio on June 30, 2023, followed by an increase on December 31, 2024, indicates varying levels of efficiency in working capital management during these periods.
Overall, the working capital turnover ratios for PPL Corporation display a mix of performance levels, with periods of both efficient and less efficient management of working capital in relation to generating sales. Analyzing the reasons behind these fluctuations can provide valuable insights for stakeholders evaluating the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024