Stanley Black & Decker Inc (SWK)
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 | 15,365,700 | 15,381,700 | 15,584,300 | 15,718,800 | 15,781,100 | 16,031,400 | 16,197,100 | 16,431,200 | 16,947,400 | 17,028,900 | 16,689,000 | 16,596,900 | 16,346,000 | 16,685,300 | 16,755,800 | 15,602,300 | 14,534,600 | 13,841,200 | 13,624,100 | 14,238,000 |
| Total current assets | US$ in thousands | 6,377,700 | 6,830,900 | 6,785,000 | 7,420,800 | 7,017,300 | 7,379,100 | 7,839,700 | 8,135,700 | 7,974,700 | 8,804,600 | 9,972,800 | 9,736,200 | 8,526,400 | 6,876,400 | 6,555,700 | 6,523,000 | 6,036,000 | 5,787,000 | 5,769,500 | 5,692,900 |
| Total current liabilities | US$ in thousands | 4,916,900 | 5,292,300 | 5,342,800 | 6,829,400 | 5,883,200 | 5,663,300 | 6,139,600 | 6,239,300 | 6,560,100 | 7,607,000 | 11,760,700 | 10,955,000 | 8,760,500 | 5,580,800 | 5,402,500 | 4,578,400 | 4,558,300 | 4,221,800 | 4,578,300 | 5,370,300 |
| Working capital turnover | 10.52 | 10.00 | 10.81 | 26.58 | 13.92 | 9.34 | 9.53 | 8.66 | 11.98 | 14.22 | — | — | — | 12.88 | 14.53 | 8.02 | 9.84 | 8.84 | 11.44 | 44.14 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,365,700K ÷ ($6,377,700K – $4,916,900K)
= 10.52
The working capital turnover ratio of Stanley Black & Decker Inc has shown fluctuations over the given periods. The ratio indicates the efficiency of the company in utilizing its working capital to generate sales revenue.
The working capital turnover ratio decreased significantly from 44.14 on March 31, 2020, to 8.02 on March 31, 2021, signaling a decline in the company's efficiency in managing working capital during this period. However, there was a notable improvement in the ratio by June 30, 2021, reaching 14.53, indicating a more effective utilization of working capital to generate sales.
Subsequently, the ratio decreased somewhat and then fluctuated around the range of 8 to 14 in the following quarters, with variations in efficiency. Notably, on March 31, 2024, there was a considerable increase in the working capital turnover ratio to 26.58, suggesting a significant improvement in utilizing working capital to generate sales revenue.
Overall, while the working capital turnover ratio of Stanley Black & Decker Inc has exhibited fluctuations, the company has demonstrated the ability to adjust its working capital management practices to enhance efficiency in generating sales revenue. Further analysis would be needed to assess the factors contributing to the fluctuations and their impact on the company's overall financial performance.
Peer comparison
Dec 31, 2024