Stanley Black & Decker Inc (SWK)
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 | 15,781,100 | 16,031,400 | 16,197,100 | 16,431,200 | 16,947,400 | 16,942,500 | 16,602,600 | 16,008,500 | 15,281,300 | 15,302,100 | 15,010,500 | 14,017,900 | 13,057,700 | 12,769,200 | 12,914,200 | 13,869,200 | 14,442,200 | 14,362,700 | 14,362,700 | 14,362,700 |
| Total current assets | US$ in thousands | 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 | 4,456,600 | 5,328,000 | 5,345,200 | 5,253,900 |
| Total current liabilities | US$ in thousands | 5,883,200 | 5,663,300 | 6,139,600 | 6,239,300 | 6,569,200 | 7,607,000 | 11,760,700 | 10,955,000 | 8,767,400 | 5,580,800 | 5,402,500 | 4,578,400 | 4,558,300 | 4,221,800 | 4,578,300 | 5,370,300 | 4,405,700 | 5,441,900 | 5,653,100 | 5,766,200 |
| Working capital turnover | 13.92 | 9.34 | 9.53 | 8.66 | 12.06 | 14.15 | — | — | — | 11.81 | 13.02 | 7.21 | 8.84 | 8.16 | 10.84 | 42.99 | 283.74 | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,781,100K ÷ ($7,017,300K – $5,883,200K)
= 13.92
Stanley Black & Decker Inc's working capital turnover ratio has varied over the past few quarters. In general, the company has shown a trend of efficiently utilizing its working capital to generate sales. The working capital turnover ratio peaked at 283.74 in the fourth quarter of 2019, reflecting a very high level of efficiency in converting its working capital into revenue during that period.
However, since then, there have been fluctuations in the working capital turnover ratio, with some quarters showing lower ratios such as 7.21 in the second quarter of 2021 and 8.16 in the third quarter of 2020. These lower ratios indicate that the company may have been less efficient in managing its working capital during those periods.
It is important to note the significant increase in the working capital turnover ratio to 42.99 in the first quarter of 2020, which could indicate a temporary increase in efficiency during that period. The most recent data shows a working capital turnover ratio of 13.92 in the fourth quarter of 2023, which is relatively high and suggests that the company is currently efficient in utilizing its working capital to generate sales.
Overall, the working capital turnover ratio of Stanley Black & Decker Inc has shown variability over time, with some quarters demonstrating high efficiency in working capital management and others showing lower efficiency. It is important for the company to consistently monitor and improve its working capital turnover to ensure optimal utilization of resources.
Peer comparison
Dec 31, 2023