Tidewater Inc (TDW)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	968,844	627,918	341,080	375,228	486,549
Total current assets	US$ in thousands	591,135	377,908	342,672	388,649	537,296
Total current liabilities	US$ in thousands	328,731	194,787	157,942	183,179	185,677
Working capital turnover		3.69	3.43	1.85	1.83	1.38

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $968,844K ÷ ($591,135K – $328,731K)
= 3.69

The working capital turnover ratio for Tidewater Inc has shown an upward trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased from 1.38 in 2019 to 3.69 in 2023, highlighting a significant enhancement in the company's ability to generate sales relative to its investment in working capital.

A higher working capital turnover ratio suggests that Tidewater Inc is able to generate more revenue using its current assets and liabilities, which can be a positive indicator of operational efficiency. The company has successfully optimized its working capital levels to support its sales growth, potentially leading to improved cash flows and profitability.

Overall, the increasing trend in the working capital turnover ratio reflects Tidewater Inc's effective management of its working capital cycle and indicates a positive outlook for the company's financial performance in terms of liquidity and operational efficiency.