Simpson Manufacturing Company Inc (SSD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,230,640 | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 |
| Total current assets | US$ in thousands | 1,176,320 | 1,312,440 | 1,179,250 | 998,835 | 753,139 |
| Total current liabilities | US$ in thousands | 366,348 | 361,257 | 348,563 | 244,602 | 194,061 |
| Working capital turnover | 2.75 | 2.32 | 2.54 | 2.07 | 2.26 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,230,640K ÷ ($1,176,320K – $366,348K)
= 2.75
The working capital turnover of Simpson Manufacturing Company Inc has shown fluctuations over the past five years. In 2020, the company's working capital turnover ratio was 2.26, indicating that the company generated $2.26 in revenue for every dollar of working capital invested. This ratio decreased to 2.07 in 2021, suggesting a decrease in the efficiency of utilizing working capital to generate revenue.
However, the trend reversed in the following years with the ratio increasing to 2.54 in 2022, 2.32 in 2023, and reaching 2.75 in 2024. These improvements imply that the company became more effective in leveraging its working capital to generate sales revenue during these years.
Overall, the fluctuation in the working capital turnover ratio reflects changes in the company's operational efficiency and effectiveness in managing its working capital to support revenue generation. The increasing trend in recent years is a positive sign of improved performance in utilizing working capital effectively.
Peer comparison
Dec 31, 2024