Stepan Company (SCL)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,180,274 | 2,186,796 | 2,202,180 | 2,225,750 | 2,325,768 | 2,420,813 | 2,577,772 | 2,749,430 | 2,773,270 | 2,756,121 | 2,639,624 | 2,483,502 | 2,345,966 | 2,230,673 | 2,092,465 | 1,957,503 | 1,869,750 | 1,820,006 | 1,807,108 | 1,819,562 |
| Total current assets | US$ in thousands | 810,429 | 918,158 | 867,140 | 869,806 | 851,883 | 849,436 | 938,722 | 1,006,520 | 1,044,800 | 1,072,750 | 1,087,370 | 1,081,870 | 913,368 | 839,213 | 815,855 | 797,653 | 905,651 | 833,036 | 796,376 | 768,544 |
| Total current liabilities | US$ in thousands | 669,034 | 721,293 | 655,195 | 628,853 | 607,870 | 582,077 | 642,037 | 662,744 | 670,649 | 603,245 | 638,228 | 611,062 | 500,476 | 491,065 | 464,501 | 464,089 | 416,554 | 361,166 | 319,172 | 310,158 |
| Working capital turnover | 15.42 | 11.11 | 10.39 | 9.24 | 9.53 | 9.05 | 8.69 | 8.00 | 7.41 | 5.87 | 5.88 | 5.27 | 5.68 | 6.41 | 5.96 | 5.87 | 3.82 | 3.86 | 3.79 | 3.97 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,180,274K ÷ ($810,429K – $669,034K)
= 15.42
Stepan Company's working capital turnover has shown a consistent upward trend from March 31, 2020, to December 31, 2024. The ratio increased from 3.97 on March 31, 2020, to 15.42 on December 31, 2024. This indicates that the company has been able to efficiently utilize its working capital to generate sales revenue.
The significant increase in the working capital turnover ratio over the period demonstrates Stepan Company's improved efficiency in managing its working capital to support its operations and sales growth. A higher turnover ratio signifies that the company is generating more revenue per unit of working capital invested, which is a positive indication of operational efficiency.
It is important for investors and stakeholders to closely monitor Stepan Company's working capital turnover ratio as it reflects the company's ability to effectively manage its working capital resources and generate sales revenue. The consistent improvement in this ratio can be seen as a positive sign of the company's operational performance and financial health over the analyzed period.
Peer comparison
Dec 31, 2024