Tidewater Inc (TDW)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	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
Revenue (ttm)	US$ in thousands	1,345,835	1,303,408	1,262,314	1,138,045	1,009,985	894,073	786,573	735,059	647,684	566,113	466,752	393,258	371,033	357,717	351,783	364,174	397,038	423,956	457,254	480,769
Total current assets	US$ in thousands	698,662	625,971	646,941	610,009	585,735	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
Total current liabilities	US$ in thousands	331,613	273,573	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
Working capital turnover		3.67	3.70	4.12	4.20	3.93	3.68	3.85	4.06	3.54	3.49	3.28	2.14	2.01	7.12	1.83	1.91	1.93	1.53	1.47	1.46

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,345,835K ÷ ($698,662K – $331,613K)
= 3.67

The working capital turnover ratio of Tidewater Inc has shown fluctuations over the past few years. The ratio stood at 1.46 as of March 31, 2020, increased slightly to 1.47 by June 30, 2020, and continued to rise, reaching 1.53 as of September 30, 2020. There was a significant jump in the ratio to 1.93 by December 31, 2020, indicating an improvement in the company's efficiency in utilizing its working capital.

The trend continued positively in the subsequent quarters, with the ratio fluctuating between 1.83 and 2.14 until March 31, 2022. However, a notable spike occurred on September 30, 2021, where the ratio surged to 7.12, indicating a substantial increase in working capital turnover efficiency. This spike might have been influenced by specific operational or financial activities during that period.

Following the spike, the ratio gradually decreased and stabilized around 3.50 from June 30, 2022, to March 31, 2024. This range suggests that Tidewater Inc maintained a relatively stable level of efficiency in converting its working capital into revenue during this period.

It is worth noting that the fluctuations in the working capital turnover ratio can be influenced by various factors such as changes in inventory management, accounts receivable collection, and accounts payable policies. Overall, a working capital turnover ratio above 1 indicates that Tidewater Inc is effectively using its working capital to generate sales, with higher ratios suggesting improved operational efficiency.