SunCoke Energy Inc (SXC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,935,400 | 2,063,200 | 1,972,500 | 1,456,000 | 1,333,000 |
| Total current assets | US$ in thousands | 474,600 | 416,800 | 374,000 | 271,900 | 229,700 |
| Total current liabilities | US$ in thousands | 205,800 | 223,800 | 224,000 | 182,200 | 158,900 |
| Working capital turnover | 7.20 | 10.69 | 13.15 | 16.23 | 18.83 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,935,400K ÷ ($474,600K – $205,800K)
= 7.20
To analyze SunCoke Energy Inc's working capital turnover, we observe a declining trend over the years. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio indicates better efficiency in managing working capital.
In this case, SunCoke Energy Inc's working capital turnover ratio has decreased significantly from 18.83 in December 31, 2020, to 7.20 in December 31, 2024. This declining trend suggests that the company may be facing challenges in efficiently utilizing its working capital to support its sales activities.
A decreasing working capital turnover ratio could be a sign of inefficient inventory management, slow accounts receivable collection, or excessive investment in current assets relative to sales. It may also indicate possible liquidity issues or an inefficient use of resources within the company.
It is essential for SunCoke Energy Inc to closely monitor its working capital turnover ratio and investigate the underlying reasons for the decline. By improving working capital management practices, the company can enhance its operational efficiency, optimize its resource allocation, and potentially improve its overall financial performance.
Peer comparison
Dec 31, 2024