Gibraltar Industries Inc (ROCK)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,308,760 | 1,377,740 | 1,389,970 | 1,339,780 | 1,032,580 |
| Total current assets | US$ in thousands | 651,332 | 462,251 | 423,937 | 446,967 | 425,460 |
| Total current liabilities | US$ in thousands | 254,862 | 225,578 | 215,320 | 286,990 | 302,240 |
| Working capital turnover | 3.30 | 5.82 | 6.66 | 8.37 | 8.38 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,308,760K ÷ ($651,332K – $254,862K)
= 3.30
The working capital turnover ratio for Gibraltar Industries Inc has shown a gradual decline over the past few years. In December 31, 2020, the ratio stood at 8.38, indicating that the company generated $8.38 in revenue for every dollar of working capital. However, by December 31, 2024, the ratio had decreased significantly to 3.30, suggesting a decrease in efficiency in utilizing its working capital to generate sales.
This declining trend in the working capital turnover ratio may raise concerns about the company's liquidity management and efficiency in managing its current assets and liabilities. A lower ratio could indicate potential issues such as slow inventory turnover, poor accounts receivable collection, or inefficient management of short-term assets and liabilities.
It is essential for Gibraltar Industries Inc to closely monitor its working capital turnover ratio and take necessary steps to improve efficiency in utilizing its working capital, which could lead to improved liquidity and overall financial performance.
Peer comparison
Dec 31, 2024