Terex Corporation (TEX)
Working capital turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,151,500 | 5,146,500 | 4,976,900 | 4,650,900 | 4,417,700 | 4,190,200 | 4,063,500 | 4,025,100 | 3,886,800 | 3,683,400 | 3,455,200 | 3,107,000 | 3,076,400 | 3,174,700 | 3,433,700 | 4,050,100 | 4,353,100 | 4,093,400 | 4,297,300 | 4,243,400 |
| Total current assets | US$ in thousands | 2,245,200 | 2,244,500 | 2,217,800 | 2,090,400 | 1,962,000 | 1,867,000 | 1,909,200 | 1,835,100 | 1,767,800 | 2,005,800 | 1,996,700 | 1,901,900 | 1,878,600 | 1,761,100 | 1,707,100 | 1,965,600 | 2,019,700 | 2,034,900 | 2,439,600 | 2,508,000 |
| Total current liabilities | US$ in thousands | 1,119,200 | 1,062,100 | 1,073,600 | 1,050,500 | 998,600 | 952,700 | 955,000 | 919,500 | 909,900 | 939,800 | 945,000 | 838,000 | 723,300 | 681,000 | 675,600 | 775,600 | 872,400 | 922,300 | 1,102,000 | 1,103,200 |
| Working capital turnover | 4.58 | 4.35 | 4.35 | 4.47 | 4.59 | 4.58 | 4.26 | 4.40 | 4.53 | 3.46 | 3.29 | 2.92 | 2.66 | 2.94 | 3.33 | 3.40 | 3.79 | 3.68 | 3.21 | 3.02 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,151,500K ÷ ($2,245,200K – $1,119,200K)
= 4.58
The working capital turnover ratio for Terex Corp. has shown consistent performance over the past eight quarters, ranging from 4.26 to 4.59. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio signifies that the company is effectively utilizing its current assets to generate revenue.
In the last quarter of 2023, the working capital turnover ratio was 4.58, which was slightly higher than the previous quarter. This indicates that Terex Corp. improved its efficiency in utilizing its working capital to generate sales revenue in Q4 2023.
Overall, the consistently high working capital turnover ratios demonstrate that Terex Corp. has been efficient in managing its working capital over the analyzed period. However, it is important for the company to maintain this efficiency to ensure sustainable growth and maximize profitability.