SPX Corp (SPXC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,713,100 | 1,450,500 | 1,205,300 | 1,542,400 | 1,502,300 |
| Total current assets | US$ in thousands | 709,600 | 721,100 | 903,400 | 675,100 | 632,100 |
| Total current liabilities | US$ in thousands | 401,200 | 333,800 | 439,500 | 572,100 | 608,600 |
| Working capital turnover | 5.55 | 3.75 | 2.60 | 14.97 | 63.93 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,713,100K ÷ ($709,600K – $401,200K)
= 5.55
The working capital turnover ratio for SPX Corp has fluctuated over the past five years, ranging from a low of 2.60 in 2021 to a high of 63.93 in 2019.
A high working capital turnover ratio indicates that the company is efficiently managing its working capital to generate revenue. In 2019, the company achieved a very high ratio of 63.93, indicating that it was able to generate significant revenue using its working capital.
On the other hand, a low ratio, as seen in 2021 with a ratio of 2.60, suggests that the company may not be effectively utilizing its working capital to generate sales.
In 2023, the working capital turnover ratio improved to 5.55, showing an increase in efficiency compared to the previous year. This indicates that the company is improving its ability to generate revenue with its working capital.
Overall, it is important for SPX Corp to closely monitor its working capital turnover ratio to ensure it is effectively managing its working capital to generate revenue efficiently and sustainably.
Peer comparison
Dec 31, 2023