RPC Inc (RES)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 1,415,000 | 1,617,470 | 1,601,760 | 864,929 | 598,302 |
Total current assets | US$ in thousands | 732,842 | 727,073 | 703,341 | 492,010 | 428,359 |
Total current liabilities | US$ in thousands | 181,913 | 151,857 | 178,603 | 130,849 | 79,565 |
Working capital turnover | 2.57 | 2.81 | 3.05 | 2.39 | 1.72 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,415,000K ÷ ($732,842K – $181,913K)
= 2.57
Over the past five years, RPC Inc has shown an increasing trend in its working capital turnover ratio, indicating a positive efficiency in utilizing its working capital to generate sales revenue. The ratio has improved from 1.72 in December 2020 to 2.57 in December 2024. This signifies that the company is able to convert its working capital into sales at a faster pace, reflecting efficient management of its current assets and liabilities.
The peak in the working capital turnover ratio was observed in December 2022 at 3.05, indicating a particularly strong performance in efficiently utilizing its working capital during that period. However, there was a slight dip in the ratio in December 2023 to 2.81, suggesting a temporary decrease in the efficiency of working capital management.
Overall, the upward trend in the working capital turnover ratio for RPC Inc demonstrates an improvement in its operational efficiency and financial performance over the five-year period, highlighting effective management of its working capital to support sales growth.
Peer comparison
Dec 31, 2024