Tidewater Inc (TDW)

Working capital turnover

		Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,228,246	1,101,938	971,068	881,665	771,718	719,441	628,700	536,653	440,428	369,602	342,682	328,155	322,185	334,670	376,625	428,080	462,011	485,942	486,549	478,007
Total current assets	US$ in thousands	646,945	615,509	591,135	575,366	410,492	396,436	377,908	346,713	329,783	309,191	342,672	350,093	355,163	363,742	388,649	440,815	473,767	518,193	537,296	644,941
Total current liabilities	US$ in thousands	340,224	339,137	328,731	332,484	206,443	215,343	194,787	184,403	187,621	125,499	157,942	299,880	162,660	172,648	183,179	163,294	162,159	189,635	185,677	159,853
Working capital turnover		4.00	3.99	3.70	3.63	3.78	3.97	3.43	3.31	3.10	2.01	1.86	6.54	1.67	1.75	1.83	1.54	1.48	1.48	1.38	0.99

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,228,246K ÷ ($646,945K – $340,224K)
= 4.00

The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales. A higher ratio indicates that the company is effectively managing its working capital to generate revenues.

Analyzing the working capital turnover of Tidewater Inc over the past few quarters, we observe fluctuations in the ratio. In the most recent period, as of June 30, 2024, the working capital turnover stood at 4.00, which is higher than the previous quarter's figure of 3.99. This indicates that Tidewater Inc has improved its efficiency in utilizing its working capital to generate sales.

Looking further back, we notice some variability in the ratio over the quarters, with figures ranging from 1.38 to 6.54. This variability could suggest fluctuations in the company's operational efficiency and management of working capital during those periods.

Overall, it is essential for Tidewater Inc to sustain a consistent and healthy working capital turnover ratio to ensure optimal utilization of its resources and continued revenue generation. Continued monitoring and analysis of this ratio will be crucial in evaluating the company's financial health and operational efficiency.