Simpson Manufacturing Company Inc (SSD)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 | 1,139,370 |
| Total current assets | US$ in thousands | 1,312,440 | 1,179,250 | 998,835 | 753,139 | 640,907 |
| Total current liabilities | US$ in thousands | 361,257 | 348,563 | 244,602 | 194,061 | 158,907 |
| Working capital turnover | 2.32 | 2.54 | 2.07 | 2.26 | 2.36 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,207,600K ÷ ($1,312,440K – $361,257K)
= 2.32
Simpson Manufacturing Co., Inc.'s working capital turnover has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In 2023 and 2022, the working capital turnover ratio was 2.33 and 2.55 respectively, showing an improvement in efficiency in converting working capital into sales. However, this ratio decreased to 2.09 in 2021, suggesting a slight decline in efficiency.
The ratio increased to 2.27 in 2020, indicating a slight improvement in managing working capital efficiently compared to the previous year. In 2019, the ratio was 2.36, slightly higher than in 2020, showing relatively better utilization of working capital to generate sales.
Overall, the trend in Simpson Manufacturing Co., Inc.'s working capital turnover suggests some fluctuations, with varying degrees of efficiency in utilizing its working capital to drive sales over the five-year period. Further analysis of the company's management of working capital and operating efficiency may provide insights into strategies to maintain or improve this ratio in the future.
Peer comparison
Dec 31, 2023