Gibraltar Industries Inc (ROCK)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,377,740 | 1,389,970 | 1,339,780 | 1,032,580 | 898,233 |
| Total current assets | US$ in thousands | 462,251 | 423,937 | 446,967 | 425,460 | 437,102 |
| Total current liabilities | US$ in thousands | 225,578 | 215,320 | 286,990 | 302,240 | 229,197 |
| Working capital turnover | 5.82 | 6.66 | 8.37 | 8.38 | 4.32 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,377,740K ÷ ($462,251K – $225,578K)
= 5.82
Based on the data provided, Gibraltar Industries Inc. has exhibited fluctuations in its working capital turnover over the past five years. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue.
The working capital turnover ratio has decreased from 8.37 in 2021 to 5.82 in 2023, indicating a decline in the company's efficiency in utilizing its working capital to generate revenue. This downward trend suggests that Gibraltar Industries Inc. may be facing challenges in managing its working capital efficiently.
It is noteworthy that the working capital turnover ratio peaked at 8.38 in 2020 before decreasing in the subsequent years. This variation could indicate fluctuations in the company's sales and working capital management practices during the period under review.
Overall, the decreasing trend in the working capital turnover ratio for Gibraltar Industries Inc. suggests that the company may need to focus on optimizing its working capital management strategies to improve operational efficiency and maximize revenue generation in the future.
Peer comparison
Dec 31, 2023