Rogers Corporation (ROG)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 902,700 959,464 934,230 796,307 890,491
Total current assets US$ in thousands 526,900 659,900 584,065 474,175 464,102
Total current liabilities US$ in thousands 116,400 142,500 163,949 111,509 100,225
Working capital turnover 2.20 1.85 2.22 2.20 2.45

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $902,700K ÷ ($526,900K – $116,400K)
= 2.20

The working capital turnover ratio for Rogers Corp. has fluctuated over the past five years. In 2023, the ratio stood at 2.21, indicating that the company generated $2.21 in net sales revenue for every dollar of working capital invested. This represents an improvement from 2022 when the ratio was 1.88.

The working capital turnover peaked in 2019 at 2.47 before declining slightly in the following years. The ratio demonstrates how effectively Rogers Corp. is utilizing its working capital to generate sales revenue, with higher values generally suggesting a more efficient utilization of resources.

Overall, the trend in the working capital turnover ratio for Rogers Corp. appears to show moderate fluctuations, with the company maintaining a relatively consistent level of efficiency in turning working capital into sales revenue over the past five years. It is important for the company to continue monitoring and managing its working capital effectively to sustain its operational efficiency and financial performance.