Southwest Gas Holdings Inc (SWX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,433,970 | 4,960,010 | 3,680,450 | 3,298,870 | 3,119,920 |
| Total current assets | US$ in thousands | 1,881,110 | 3,707,660 | 1,614,770 | 871,013 | 859,856 |
| Total current liabilities | US$ in thousands | 1,684,850 | 3,422,960 | 3,112,050 | 911,967 | 1,079,860 |
| Working capital turnover | 27.69 | 17.42 | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,433,970K ÷ ($1,881,110K – $1,684,850K)
= 27.69
The working capital turnover ratio for Southwest Gas Holdings Inc has shown a significant improvement over the years, increasing from 17.42 in 2019 to 27.69 in 2023. This indicates that the company has been able to generate more revenue for each dollar of working capital invested, reflecting efficient management of its working capital. The upward trend in this ratio suggests that Southwest Gas Holdings Inc has been able to optimize its short-term assets and liabilities effectively to support its operational activities and revenue generation. Overall, the increasing working capital turnover ratio is a positive sign of the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023