RPC Inc (RES)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,414,999	1,474,169	1,466,934	1,518,639	1,617,474	1,704,973	1,834,157	1,793,806	1,601,762	1,387,984	1,153,693	966,943	864,929	745,314	636,592	537,135	598,302	685,662	862,314	1,131,530
Total current assets	US$ in thousands	732,842	677,780	696,975	713,334	727,073	686,439	748,335	719,624	703,341	655,122	583,220	517,202	492,010	457,855	446,228	449,641	428,359	430,328	409,103	479,824
Total current liabilities	US$ in thousands	181,913	134,605	151,104	150,036	151,857	140,112	137,099	158,514	178,603	198,244	173,233	139,232	130,849	120,721	96,223	103,547	79,565	93,262	58,814	118,178
Working capital turnover		2.57	2.71	2.69	2.70	2.81	3.12	3.00	3.20	3.05	3.04	2.81	2.56	2.39	2.21	1.82	1.55	1.72	2.03	2.46	3.13

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,414,999K ÷ ($732,842K – $181,913K)
= 2.57

The working capital turnover of RPC Inc has been showing a fluctuating trend over the past few years. The ratio has improved from 3.13 in March 2020 to reach a peak of 3.20 in March 2023, indicating that the company was able to generate $3.20 in revenue for every dollar of working capital invested.

However, the ratio declined slightly in the subsequent quarters, settling at 2.57 by December 2024. This decrease could suggest a potential reduction in the efficiency of the company in generating revenue from its working capital.

Overall, despite the slight decline in recent periods, RPC Inc's working capital turnover ratio remains relatively healthy, indicating that the company has been effectively utilizing its working capital to generate sales revenue.