SPX Corp (SPXC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,983,900 | 1,741,200 | 1,460,900 | 1,219,500 | 1,559,500 |
| Total current assets | US$ in thousands | 784,300 | 709,600 | 721,100 | 903,400 | 682,600 |
| Total current liabilities | US$ in thousands | 418,300 | 401,200 | 333,800 | 439,500 | 584,900 |
| Working capital turnover | 5.42 | 5.65 | 3.77 | 2.63 | 15.96 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,983,900K ÷ ($784,300K – $418,300K)
= 5.42
The working capital turnover ratio for SPX Corp has exhibited fluctuations over the past five years. In 2020, the ratio stood at a high level of 15.96, indicating that the company generated substantial revenue relative to its working capital investment during that period. However, this ratio experienced a significant decline in 2021 to 2.63, suggesting a decrease in efficiency in utilizing working capital to generate sales.
Subsequently, in 2022, there was a slight improvement as the working capital turnover ratio increased to 3.77, indicating a better utilization of working capital compared to the previous year. This trend continued in 2023, where the ratio further improved to 5.65, reflecting an efficient management of working capital in supporting revenue generation.
However, in 2024, the working capital turnover ratio declined to 5.42, showing a slight decrease in efficiency compared to the previous year. Overall, while there have been fluctuations in the working capital turnover ratio of SPX Corp, the general trend indicates an improvement in the efficient use of working capital to drive sales, although there was a slight decrease in efficiency in the most recent year.
Peer comparison
Dec 31, 2024