Simpson Manufacturing Company Inc (SSD)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,231,253 | 2,210,675 | 2,203,597 | 2,204,118 | 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 |
| Total current assets | US$ in thousands | 1,176,320 | 1,334,770 | 1,331,080 | 1,328,750 | 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 |
| Total current liabilities | US$ in thousands | 366,348 | 377,951 | 360,325 | 352,441 | 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 |
| Working capital turnover | 2.75 | 2.31 | 2.27 | 2.26 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,231,253K ÷ ($1,176,320K – $366,348K)
= 2.75
Simpson Manufacturing Company Inc's working capital turnover has shown fluctuations over the past few years. It stood at 1.98 on March 31, 2020, indicating that the company generated $1.98 in revenue for every dollar of working capital invested during that period. The ratio decreased to 1.85 by June 30, 2020, before gradually increasing to 2.26 by December 31, 2020.
From March 31, 2021, to March 31, 2024, the working capital turnover fluctuated within a range of 1.16 to 2.75. The company experienced peaks in efficiency in generating revenue relative to its working capital on December 31, 2022, and December 31, 2024, both surpassing the 2.5 threshold.
Overall, Simpson Manufacturing Company Inc's working capital turnover ratio indicates its ability to efficiently utilize its working capital to generate revenue. The consistent improvements in the ratio over time suggest enhanced operational efficiency and effective management of the company's working capital resources.
Peer comparison
Dec 31, 2024