Quanta Services Inc (PWR)
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 | 20,699,050 | 19,351,160 | 18,210,790 | 17,413,820 | 16,964,340 | 16,466,920 | 15,376,000 | 14,164,130 | 12,918,810 | 11,929,390 | 11,598,750 | 11,105,910 | 11,160,720 | 11,373,800 | 11,696,580 | 12,023,630 | 12,064,950 | 12,064,370 | 11,706,800 | 14,182,960 |
| Total current assets | US$ in thousands | 7,676,900 | 6,735,370 | 6,322,390 | 5,570,590 | 5,536,070 | 5,347,820 | 5,020,860 | 4,865,620 | 4,732,580 | 5,704,130 | 3,733,940 | 3,605,570 | 3,588,390 | 3,677,010 | 3,644,760 | 3,758,600 | 3,830,990 | 4,301,930 | 3,751,930 | 3,554,540 |
| Total current liabilities | US$ in thousands | 5,213,120 | 4,192,240 | 3,763,670 | 3,427,320 | 3,406,190 | 3,346,220 | 3,219,550 | 3,217,820 | 3,164,960 | 2,364,550 | 2,131,130 | 2,100,060 | 2,138,560 | 2,178,270 | 2,093,360 | 2,115,910 | 2,263,050 | 2,357,520 | 1,906,230 | 1,778,740 |
| Working capital turnover | 8.40 | 7.61 | 7.12 | 8.12 | 7.96 | 8.23 | 8.54 | 8.60 | 8.24 | 3.57 | 7.24 | 7.38 | 7.70 | 7.59 | 7.54 | 7.32 | 7.69 | 6.20 | 6.34 | 7.99 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $20,699,050K ÷ ($7,676,900K – $5,213,120K)
= 8.40
The working capital turnover of Quanta Services, Inc. has been relatively stable over the past eight quarters, ranging from 7.17 to 8.64. This ratio indicates that the company generates revenue efficiently from its working capital, with higher values suggesting that Quanta is effectively using its working capital to support its operations and generate sales.
The decreasing trend from Q2 to Q4 of 2023 could indicate either a decrease in sales relative to working capital or an increase in the company's investment in working capital. It would be important to further investigate the specific drivers behind this trend to understand the company's efficiency in managing its working capital.
Overall, with a working capital turnover consistently above 1, Quanta Services, Inc. appears to be effectively managing its working capital to support its operations and generate revenue. Additional analysis would be needed to determine if there are any potential opportunities for improvement in the management of working capital efficiency.
Peer comparison
Dec 31, 2023