SPX Corp (SPXC)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,711,900 | 1,685,500 | 1,617,500 | 1,553,600 | 1,460,900 | 1,381,600 | 1,296,800 | 1,239,400 | 1,219,500 | 1,217,800 | 1,291,000 | 1,362,800 | 1,440,200 | 1,536,500 | 1,537,400 | 1,536,100 | 1,509,800 | 1,510,200 | 1,507,000 | 1,893,200 |
| Total current assets | US$ in thousands | 709,600 | 768,600 | 739,000 | 819,800 | 721,100 | 837,700 | 778,600 | 815,500 | 903,400 | 1,046,500 | 901,400 | 695,500 | 675,100 | 648,600 | 769,000 | 744,000 | 632,100 | 563,100 | 545,500 | 553,700 |
| Total current liabilities | US$ in thousands | 401,200 | 493,700 | 489,600 | 393,900 | 333,800 | 374,400 | 368,200 | 393,900 | 439,500 | 477,500 | 707,600 | 586,800 | 572,100 | 562,200 | 704,000 | 702,100 | 608,600 | 466,800 | 466,600 | 495,000 |
| Working capital turnover | 5.55 | 6.13 | 6.49 | 3.65 | 3.77 | 2.98 | 3.16 | 2.94 | 2.63 | 2.14 | 6.66 | 12.54 | 13.98 | 17.78 | 23.65 | 36.66 | 64.25 | 15.68 | 19.10 | 32.25 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,711,900K ÷ ($709,600K – $401,200K)
= 5.55
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that a company is effectively managing its current assets and liabilities to support its operations.
Analyzing the working capital turnover ratio for SPX Corp over the provided periods, we observe fluctuations in the ratio. In the recent quarters, the ratio has ranged from 3.65 to 6.49, indicating a moderate level of efficiency in utilizing working capital to generate sales. This suggests that the company is effectively managing its current assets and liabilities to support its operations and generate revenue.
Notably, the working capital turnover ratio saw a significant increase in the first half of 2021, reaching exceptionally high levels of 12.54, 13.98, and 17.78 in March, June, and September 2021, respectively. These spikes could indicate improved efficiency in managing working capital during that period, which may be attributed to factors such as better inventory management, collections on receivables, or optimized payment of suppliers.
However, it is important to note that the working capital turnover ratio in some periods, such as March 2020 and December 2019, reached extremely high levels, exceeding 36 and 64, respectively. These exceptionally high ratios may be a result of specific circumstances or anomalies in the company's financial operations during those periods.
Overall, while the working capital turnover ratio for SPX Corp has shown some variability, the recent levels suggest that the company has been managing its working capital effectively to support its sales activities, though further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's working capital efficiency.
Peer comparison
Dec 31, 2023