Resideo Technologies Inc (REZI)
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 | 6,194,000 | 6,209,000 | 6,274,000 | 6,362,000 | 6,308,000 | 6,221,000 | 6,083,000 | 5,875,000 | 5,786,000 | 5,837,000 | 5,720,000 | 5,284,000 | 5,057,000 | 4,860,000 | 4,722,000 | 4,917,000 | 4,937,000 | 4,899,000 | 4,889,000 | |
| Total current assets | US$ in thousands | 2,743,000 | 2,615,000 | 2,622,000 | 2,495,000 | 2,502,000 | 2,450,000 | 2,481,000 | 2,339,000 | 2,541,000 | 2,507,000 | 2,356,000 | 2,220,000 | 2,225,000 | 1,923,000 | 1,843,000 | 1,993,000 | 1,785,000 | 1,840,000 | 1,846,000 | 1,862,000 |
| Total current liabilities | US$ in thousands | 1,525,000 | 1,467,000 | 1,524,000 | 1,469,000 | 1,546,000 | 1,542,000 | 1,579,000 | 1,546,000 | 1,494,000 | 1,532,000 | 1,511,000 | 1,446,000 | 1,538,000 | 1,645,000 | 1,662,000 | 1,755,000 | 1,494,000 | 1,551,000 | 1,559,000 | 1,559,000 |
| Working capital turnover | 5.09 | 5.41 | 5.71 | 6.20 | 6.60 | 6.85 | 6.74 | 7.41 | 5.53 | 5.99 | 6.77 | 6.83 | 7.36 | 17.48 | 26.09 | 20.66 | 16.97 | 16.95 | 17.03 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,194,000K ÷ ($2,743,000K – $1,525,000K)
= 5.09
The working capital turnover of Resideo Technologies Inc has shown a declining trend from Q1 2022 to Q4 2023, indicating a decrease in the company's ability to efficiently utilize its working capital to generate sales. The turnover ratio peaked at 7.48 in Q1 2022 and has steadily decreased to 5.13 in Q4 2023. This decline may suggest inefficiencies in managing the company's current assets and liabilities, potentially leading to slower sales generation per unit of working capital.
A decrease in the working capital turnover ratio could be influenced by various factors, including inventory management issues, extended accounts receivable collection periods, or inefficient use of current assets. It is essential for the company to closely monitor and improve its working capital management practices to enhance operational efficiency and boost overall financial performance.