Skechers USA Inc (SKX)
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 | 8,969,350 | 8,717,870 | 8,395,130 | 8,250,010 | 8,000,350 | 7,918,190 | 7,771,600 | 7,626,880 | 7,444,540 | 7,213,640 | 6,886,230 | 6,676,200 | 6,285,030 | 5,961,860 | 5,711,790 | 4,783,492 | 4,597,412 | 4,603,432 | 4,656,542 | 5,185,630 |
| Total current assets | US$ in thousands | 4,449,420 | 4,698,510 | 4,254,020 | 3,930,390 | 3,952,600 | 3,767,750 | 3,669,690 | 3,709,980 | 3,646,270 | 3,581,880 | 3,569,970 | 3,425,600 | 3,372,240 | 3,302,680 | 3,246,040 | 3,464,740 | 3,344,350 | 3,385,630 | 3,136,790 | 3,230,410 |
| Total current liabilities | US$ in thousands | 2,256,480 | 2,396,660 | 2,061,240 | 1,642,530 | 1,660,870 | 1,493,530 | 1,477,300 | 1,539,630 | 1,613,040 | 1,576,820 | 1,527,680 | 1,405,770 | 1,445,580 | 1,336,950 | 1,338,300 | 1,271,380 | 1,212,710 | 1,260,440 | 1,076,790 | 1,042,990 |
| Working capital turnover | 4.09 | 3.79 | 3.83 | 3.61 | 3.49 | 3.48 | 3.54 | 3.51 | 3.66 | 3.60 | 3.37 | 3.31 | 3.26 | 3.03 | 2.99 | 2.18 | 2.16 | 2.17 | 2.26 | 2.37 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,969,350K ÷ ($4,449,420K – $2,256,480K)
= 4.09
The working capital turnover ratio of Skechers USA Inc has shown a generally increasing trend over the mentioned period. The ratio increased from 2.37 in March 2020 to 4.09 in December 2024. This indicates that the company has been able to efficiently utilize its working capital to generate revenue.
A working capital turnover ratio above 1 indicates that the company is effectively using its working capital to support its operations and generate sales. As the ratio increases over time, it suggests that the company is managing its working capital more efficiently.
The gradual increase in the working capital turnover ratio for Skechers USA Inc may indicate improvements in inventory management, collection of receivables, and payment of payables. A higher ratio generally reflects better liquidity management and operational efficiency.
Overall, the increasing trend in the working capital turnover ratio for Skechers USA Inc is a positive indicator of the company's ability to convert its working capital into sales and reflects effective working capital management practices.
Peer comparison
Dec 31, 2024