Terex Corporation (TEX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,127,000 | 5,152,000 | 4,417,700 | 3,886,800 | 3,076,400 |
| Total current assets | US$ in thousands | 2,320,000 | 2,245,000 | 1,962,000 | 1,767,800 | 1,878,600 |
| Total current liabilities | US$ in thousands | 1,073,000 | 1,119,000 | 998,600 | 909,900 | 723,300 |
| Working capital turnover | 4.11 | 4.58 | 4.59 | 4.53 | 2.66 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,127,000K ÷ ($2,320,000K – $1,073,000K)
= 4.11
To analyze Terex Corporation's working capital turnover, we look at the data provided for the years from December 31, 2020, to December 31, 2024. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.
Here is the trend in Terex Corporation's working capital turnover over the period:
- December 31, 2020: 2.66
- December 31, 2021: 4.53
- December 31, 2022: 4.59
- December 31, 2023: 4.58
- December 31, 2024: 4.11
The increasing trend in the working capital turnover ratio from 2.66 in 2020 to 4.11 in 2024 indicates that Terex Corporation has been more effective in utilizing its working capital to support sales growth. A higher ratio suggests that the company is efficient in managing its working capital and generating revenue from its capital investments.
Overall, Terex Corporation has shown a positive trend in its working capital turnover ratio, reflecting improved efficiency in managing its working capital to support the business operations and generate sales.