Saia Inc (SAIA)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,877,990	2,789,400	2,289,390	1,819,720	1,780,450
Total current assets	US$ in thousands	648,694	530,886	416,255	271,696	232,379
Total current liabilities	US$ in thousands	322,056	274,085	321,348	275,754	241,246
Working capital turnover		8.81	10.86	24.12	—	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,877,990K ÷ ($648,694K – $322,056K)
= 8.81

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.

Saia Inc.'s working capital turnover has shown a declining trend over the past three years. In 2021, the ratio was 24.12, indicating that the company generated $24.12 of revenue for every dollar of working capital invested. The sharp decrease in 2022 to 10.87 suggests that the company may have been less effective in utilizing its working capital to drive sales during that year.

The most recent ratio for 2023 at 8.82 continues the downward trend, signaling a further decrease in efficiency in converting working capital into sales revenue. It is important for Saia Inc. to closely monitor and manage its working capital to improve efficiency and optimize its financial performance moving forward.