Stanley Black & Decker Inc (SWK)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,781,100 | 16,947,400 | 15,281,300 | 12,750,000 | 12,912,900 |
| Total current assets | US$ in thousands | 7,017,300 | 7,974,700 | 8,526,400 | 6,036,000 | 4,456,600 |
| Total current liabilities | US$ in thousands | 5,883,200 | 6,569,200 | 8,767,400 | 4,558,300 | 4,405,700 |
| Working capital turnover | 13.92 | 12.06 | — | 8.63 | 253.69 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,781,100K ÷ ($7,017,300K – $5,883,200K)
= 13.92
The working capital turnover of Stanley Black & Decker Inc has exhibited fluctuating trends over the past five years, reflecting variations in the company's efficiency in utilizing its working capital to generate sales revenue.
In 2019, the working capital turnover ratio was exceptionally high at 253.69, indicating that the company was able to generate a significant amount of sales relative to its working capital investment. This could suggest efficient management of working capital during that period.
Subsequently, the ratio decreased to 8.63 in 2020, signifying a sharp decline in the efficiency of working capital utilization. This could imply challenges in effectively managing and deploying the company's current assets and liabilities to support its sales activities.
The working capital turnover ratio then improved to 12.06 in 2022 and further increased to 13.92 in 2023. These upticks reflect better efficiency in converting working capital into sales revenue, potentially indicating enhanced operational performance and financial management by the company during these years.
Overall, the fluctuating trend in Stanley Black & Decker Inc's working capital turnover ratio underscores the importance of monitoring and managing working capital effectively to support sustainable business growth and profitability.
Peer comparison
Dec 31, 2023