EchoStar Corporation (SATS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,266,000 | 2,033,290 | 1,986,150 | 1,801,530 | 1,803,760 |
| Total current assets | US$ in thousands | 4,891,810 | 6,757,710 | 1,926,900 | 2,908,090 | 2,836,210 |
| Total current liabilities | US$ in thousands | 8,018,590 | 6,442,610 | 460,123 | 1,425,170 | 496,019 |
| Working capital turnover | — | 6.45 | 1.35 | 1.21 | 0.77 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,266,000K ÷ ($4,891,810K – $8,018,590K)
= —
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. Looking at the trend for EchoStar Corporation over the past five years, we see an improvement in the working capital turnover ratio.
In 2019, the working capital turnover ratio was 0.77, indicating that the company generated $0.77 in revenue for every dollar of working capital it had. Over the following years, the ratio increased significantly to 1.21 in 2020, 1.35 in 2021, and further to 6.45 in 2022. This indicates that EchoStar Corporation has been able to generate more sales revenue for each dollar of working capital as compared to previous years.
The significant jump in the working capital turnover ratio from 2021 to 2022 suggests that the company has become more efficient in managing its working capital, which could be due to improved inventory management, better receivables collection, or more effective payment of its liabilities. A higher working capital turnover ratio is generally considered positive as it implies that the company is generating more revenue from its existing working capital.
However, it is important to note that the absence of a working capital turnover ratio for 2023 limits the ability to assess the current trend. Nevertheless, based on the data available, the increasing trend in EchoStar Corporation's working capital turnover ratio reflects an improvement in the efficiency of its working capital management in recent years.
Peer comparison
Dec 31, 2023