Simpson Manufacturing Company Inc (SSD)
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 | 2,207,715 | 2,177,144 | 2,150,806 | 2,146,344 | 2,106,837 | 2,054,135 | 1,897,115 | 1,714,148 | 1,566,618 | 1,445,325 | 1,412,952 | 1,328,784 | 1,265,192 | 1,242,584 | 1,188,145 | 1,167,566 | 1,142,046 | 1,123,770 | 1,098,420 | 1,100,807 |
| Total current assets | US$ in thousands | 1,312,440 | 1,478,200 | 1,372,800 | 1,222,540 | 1,179,250 | 1,232,150 | 1,204,610 | 1,787,880 | 998,835 | 949,654 | 901,703 | 819,001 | 753,139 | 820,405 | 834,902 | 751,983 | 640,907 | 635,254 | 613,950 | 575,738 |
| Total current liabilities | US$ in thousands | 361,257 | 427,569 | 396,948 | 330,666 | 348,563 | 346,166 | 361,396 | 306,849 | 244,602 | 245,477 | 232,454 | 224,814 | 194,061 | 191,161 | 193,414 | 162,851 | 158,907 | 165,867 | 157,241 | 150,578 |
| Working capital turnover | 2.32 | 2.07 | 2.20 | 2.41 | 2.54 | 2.32 | 2.25 | 1.16 | 2.08 | 2.05 | 2.11 | 2.24 | 2.26 | 1.97 | 1.85 | 1.98 | 2.37 | 2.39 | 2.41 | 2.59 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,207,715K ÷ ($1,312,440K – $361,257K)
= 2.32
Simpson Manufacturing Co., Inc.'s working capital turnover has exhibited fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates that the company is effectively using its working capital to support its sales activities.
In the latest quarter, Q4 2023, the working capital turnover ratio stood at 2.33, indicating that for every dollar of working capital, the company generated $2.33 in sales. This represents an improvement compared to the previous quarter's ratio of 2.08 in Q3 2023.
Looking at the trend over the past year, the company has generally maintained a healthy working capital turnover ratio, staying above 2.0 in most quarters. However, there was a significant drop in Q1 2022 where the ratio fell to 1.16, suggesting a temporary inefficiency in utilizing working capital to generate sales.
Overall, Simpson Manufacturing Co., Inc. should continue to monitor and aim to sustain a working capital turnover ratio above 2.0 to demonstrate efficient management of its working capital in supporting its sales operations.
Peer comparison
Dec 31, 2023