Quanta Services Inc (PWR)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,695,300 | 16,964,300 | 12,920,400 | 11,160,700 | 12,051,100 |
| Total current assets | US$ in thousands | 7,676,900 | 5,536,070 | 4,732,580 | 3,588,390 | 3,830,990 |
| Total current liabilities | US$ in thousands | 5,213,120 | 3,406,190 | 3,164,960 | 2,138,560 | 2,263,050 |
| Working capital turnover | 8.40 | 7.96 | 8.24 | 7.70 | 7.69 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,695,300K ÷ ($7,676,900K – $5,213,120K)
= 8.40
Quanta Services, Inc. has demonstrated consistent efficiency in managing its working capital over the past five years, as indicated by its working capital turnover ratio. The working capital turnover ratio measures the company's ability to generate revenue relative to the amount of working capital it invests.
The trend of Quanta's working capital turnover shows a slight fluctuation but remains relatively stable and high, with values ranging from 7.72 to 8.48 over the five-year period. This indicates that Quanta has been effective in utilizing its working capital to generate sales revenue efficiently.
A higher working capital turnover ratio suggests that the company is efficient in managing its current assets and liabilities, leading to a faster turnover of working capital. Quanta's consistently high ratios signify that the company has a robust working capital management process in place, enabling it to optimize the utilization of its current assets efficiently.
Overall, Quanta Services, Inc. has maintained a solid performance in terms of working capital turnover, reflecting its ability to effectively leverage its current assets to drive revenue generation over the years.
Peer comparison
Dec 31, 2023