Smurfit WestRock plc (SW)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,272,000 | 12,815,000 | 10,107,000 | 8,530,000 |
| Total current assets | US$ in thousands | 4,081,000 | 4,509,000 | 4,084,000 | 3,258,000 |
| Total current liabilities | US$ in thousands | 2,694,000 | 3,027,000 | 2,827,000 | 2,230,000 |
| Working capital turnover | 8.13 | 8.65 | 8.04 | 8.30 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,272,000K ÷ ($4,081,000K – $2,694,000K)
= 8.13
Smurfit WestRock plc's working capital turnover has shown a relatively consistent trend over the past four years, ranging from 8.04 to 8.65. This metric indicates how efficiently the company is utilizing its working capital to generate revenue. A higher working capital turnover ratio suggests that the company is effectively managing its working capital to support its operations and generate sales.
The slight fluctuations in the working capital turnover ratio over the years may indicate some variability in the company's management of its working capital. It is important for the company to closely monitor and optimize its working capital management to ensure the efficient utilization of its resources.
Overall, with working capital turnover consistently above 8, Smurfit WestRock plc demonstrates a strong ability to efficiently convert its working capital into revenue, indicating effective working capital management practices.
Peer comparison
Dec 31, 2023