Patterson-UTI Energy Inc (PTEN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,377,910 | 4,146,460 | 2,619,410 | 1,316,530 | 1,090,150 |
| Total current assets | US$ in thousands | 1,295,320 | 1,485,700 | 829,419 | 583,653 | 477,956 |
| Total current liabilities | US$ in thousands | 841,993 | 1,050,440 | 550,966 | 435,853 | 273,722 |
| Working capital turnover | 11.86 | 9.53 | 9.41 | 8.91 | 5.34 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,377,910K ÷ ($1,295,320K – $841,993K)
= 11.86
Patterson-UTI Energy Inc's working capital turnover has exhibited a positive trend over the past five years, increasing from 5.34 in 2020 to 11.86 in 2024. This indicates that the company has been able to efficiently utilize its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is effectively managing its current assets and liabilities to support its operations.
The steady increase in the working capital turnover ratio signifies improved operational efficiency and liquidity management within the organization. It implies that Patterson-UTI Energy Inc has been able to convert its current assets into sales revenue at a faster pace each year, reflecting better working capital management. This could be attributed to effective inventory management, timely accounts receivable collection, and efficient payment of accounts payable.
A rising working capital turnover ratio generally indicates a healthy financial position and effective working capital management practices. The company's ability to continually improve this ratio suggests that it is optimizing its working capital resources to drive revenue growth and improve overall financial performance.
Peer comparison
Dec 31, 2024