Southwest Gas Holdings Inc (SWX)
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 | 5,433,960 | 5,487,320 | 5,443,420 | 5,295,900 | 4,960,010 | 4,623,550 | 4,386,656 | 4,061,957 | 3,680,454 | 3,510,104 | 3,412,634 | 3,348,460 | 3,298,873 | 3,232,930 | 3,166,934 | 3,122,698 | 3,119,917 | 3,058,434 | 3,001,350 | 2,959,222 |
| Total current assets | US$ in thousands | 1,881,110 | 1,998,480 | 2,240,210 | 2,258,020 | 3,707,660 | 1,709,640 | 1,643,840 | 2,046,580 | 1,614,770 | 1,392,610 | 1,006,800 | 1,000,900 | 871,013 | 732,828 | 867,200 | 672,919 | 859,856 | 765,402 | 752,081 | 830,380 |
| Total current liabilities | US$ in thousands | 1,684,850 | 1,052,530 | 1,057,410 | 1,610,490 | 3,422,960 | 1,313,730 | 2,350,420 | 2,630,200 | 3,112,050 | 1,355,230 | 1,272,400 | 1,036,040 | 911,967 | 839,222 | 918,017 | 979,815 | 1,079,860 | 782,344 | 726,504 | 974,478 |
| Working capital turnover | 27.69 | 5.80 | 4.60 | 8.18 | 17.42 | 11.68 | — | — | — | 93.90 | — | — | — | — | — | — | — | — | 117.35 | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,433,960K ÷ ($1,881,110K – $1,684,850K)
= 27.69
Southwest Gas Holdings Inc's working capital turnover is a measure of how efficiently the company is utilizing its working capital to generate revenue. The working capital turnover has exhibited fluctuations over the past quarters, with Q4 2023 showing the highest ratio of 27.69, indicating that the company generated $27.69 in revenue for every dollar of working capital during that period. This substantial increase from the previous quarters suggests a significant improvement in the company's working capital efficiency.
However, it is notable that in Q3 2023, the working capital turnover was much lower at 5.80, which could indicate inefficiencies in managing working capital during that period. The ratios in Q2 2023 and Q1 2023 were also lower at 4.60 and 8.18 respectively, showing a mixed performance in utilizing working capital efficiently.
Comparing to the ratios from the previous year, Q4 2022 had a working capital turnover of 17.42, lower than Q4 2023 but higher than the ratios in the following quarters. Q3 and Q2 2022 had working capital turnover ratios of 11.68 and — respectively, indicating a lack of data for Q2 2022.
Overall, the trend in working capital turnover for Southwest Gas Holdings Inc has shown variability, with the latest quarter demonstrating significant improvement in efficiency. It is essential for the company to maintain a balance in managing its working capital to ensure optimal utilization in generating revenue.
Peer comparison
Dec 31, 2023