Gibraltar Industries Inc (ROCK)
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 | 1,308,764 | 1,335,518 | 1,365,066 | 1,376,975 | 1,377,736 | 1,362,786 | 1,363,333 | 1,365,368 | 1,389,966 | 1,410,554 | 1,388,616 | 1,370,056 | 1,339,783 | 1,270,535 | 1,197,974 | 1,104,769 | 1,032,578 | 993,411 | 957,403 | 926,474 |
| Total current assets | US$ in thousands | 651,332 | 642,291 | 591,865 | 530,719 | 462,251 | 507,690 | 462,970 | 428,278 | 423,937 | 539,201 | 529,577 | 485,471 | 446,967 | 451,644 | 399,544 | 352,017 | 425,460 | 481,553 | 416,375 | 363,152 |
| Total current liabilities | US$ in thousands | 254,862 | 306,593 | 285,485 | 263,599 | 225,578 | 313,015 | 293,048 | 239,693 | 215,320 | 282,368 | 303,528 | 287,701 | 286,990 | 279,736 | 286,809 | 258,667 | 302,240 | 269,493 | 240,143 | 221,523 |
| Working capital turnover | 3.30 | 3.98 | 4.46 | 5.15 | 5.82 | 7.00 | 8.02 | 7.24 | 6.66 | 5.49 | 6.14 | 6.93 | 8.37 | 7.39 | 10.63 | 11.83 | 8.38 | 4.68 | 5.43 | 6.54 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,308,764K ÷ ($651,332K – $254,862K)
= 3.30
The working capital turnover of Gibraltar Industries Inc has exhibited fluctuating trends over the observed periods. The ratio measures how efficiently the company utilizes its working capital to generate revenue.
From March 31, 2020, to March 31, 2021, there was a significant improvement in working capital turnover, increasing from 6.54 to 11.83, indicating an enhanced efficiency in utilizing working capital to generate sales. This trend continued to June 30, 2021, where the ratio remained relatively high at 10.63.
However, from September 30, 2021, to December 31, 2024, the working capital turnover ratio experienced a gradual decline, dropping to as low as 3.30 by December 31, 2024. This downward trend suggests a potential inefficiency in utilizing working capital to drive sales during these periods.
The company may need to focus on managing its working capital effectively to ensure optimal utilization and maintain a healthy turnover ratio. Efficient working capital management is crucial for sustaining operations and maximizing profitability in the long run. Further analysis of operational and financial strategies may be warranted to address the declining trend in working capital turnover.
Peer comparison
Dec 31, 2024