Rogers Corporation (ROG)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	830,100	908,400	971,171	932,886	802,583
Total current assets	US$ in thousands	493,900	526,900	659,867	584,065	474,175
Total current liabilities	US$ in thousands	123,500	116,400	142,537	163,949	111,509
Working capital turnover		2.24	2.21	1.88	2.22	2.21

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $830,100K ÷ ($493,900K – $123,500K)
= 2.24

Rogers Corporation's working capital turnover ratio has displayed some fluctuations over the past five years. In 2020, the ratio was 2.21, indicating that the company generated revenue 2.21 times for each dollar of working capital invested. The ratio slightly increased to 2.22 in 2021, suggesting a marginal improvement in efficiency.

However, in 2022, the working capital turnover declined to 1.88, reflecting a decrease in the company's ability to efficiently utilize its working capital to generate sales. This decrease may signify potential inefficiencies in managing the company's current assets and liabilities.

The ratio rebounded to 2.21 in 2023, returning to its 2020 level. This suggests that the company was able to improve its working capital efficiency back to previous levels. Moreover, in 2024, the working capital turnover ratio increased to 2.24, indicating an enhancement in the company's ability to generate revenue from its working capital, potentially pointing towards improved operational efficiency and liquidity management.

Overall, while there have been fluctuations in Rogers Corporation's working capital turnover ratio over the years, the general trend has shown fluctuations but some signs of improvement. Management should continue monitoring and optimizing the efficiency of working capital management to drive sustainable growth and profitability.