RPC Inc (RES)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,627,900	1,610,970	874,713	607,747	1,225,850
Total current assets	US$ in thousands	727,073	703,341	492,010	428,359	436,858
Total current liabilities	US$ in thousands	151,857	178,603	130,849	79,565	101,402
Working capital turnover		2.83	3.07	2.42	1.74	3.65

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,627,900K ÷ ($727,073K – $151,857K)
= 2.83

The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio suggests effective management of assets and liabilities.

In the case of RPC, Inc., the working capital turnover has fluctuated over the past five years. In 2023, the ratio stood at 2.81, slightly lower than the previous year's 3.05. This implies that for each dollar of working capital, RPC generated $2.81 in sales revenue in 2023.

Compared to 2021 and 2020, the working capital turnover has improved significantly, indicating better utilization of working capital to drive sales. However, it is worth noting that the ratio in 2023 is still lower than the peak seen in 2019 when it reached 3.64.

Overall, while there has been some variability in the working capital turnover ratio for RPC, Inc., the company has demonstrated an ability to efficiently convert its working capital into sales, albeit with some fluctuations in performance over the past five years.