Gibraltar Industries Inc (ROCK)
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 | 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 | 898,233 | 913,112 | 932,414 | 974,195 |
| Total current assets | US$ in thousands | 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 | 437,102 | 434,527 | 361,245 | 317,586 |
| Total current liabilities | US$ in thousands | 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 | 229,197 | 240,185 | 188,253 | 168,141 |
| Working capital turnover | 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 | 4.32 | 4.70 | 5.39 | 6.52 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,377,736K ÷ ($462,251K – $225,578K)
= 5.82
The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
Based on the data provided, Gibraltar Industries Inc. had a fluctuating working capital turnover ratio over the past eight quarters. The ratio ranged from a low of 5.49 in Q3 2022 to a high of 8.02 in Q2 2023. Overall, the company's working capital turnover has shown an improving trend since Q3 2022, with an average ratio of approximately 6.78 over the past eight quarters.
The increasing trend in the working capital turnover ratio signifies that Gibraltar Industries Inc. has been able to effectively manage its working capital to support its operations and generate revenue. This improvement indicates that the company is efficiently utilizing its current assets and liabilities to drive sales and operations.
It is important for investors and analysts to monitor this ratio over time to assess the company's ability to efficiently convert its working capital into revenue. An increasing trend in the working capital turnover ratio is generally viewed positively, as it suggests improved efficiency and effectiveness in the company's working capital management.
Peer comparison
Dec 31, 2023