Terex Corporation (TEX)
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 | 5,127,200 | 5,108,800 | 5,186,900 | 5,208,300 | 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 |
| Total current assets | US$ in thousands | 2,320,000 | 2,381,000 | 2,401,600 | 2,389,600 | 2,245,000 | 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 |
| Total current liabilities | US$ in thousands | 1,073,000 | 996,000 | 1,087,900 | 1,105,200 | 1,119,000 | 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 |
| Working capital turnover | 4.11 | 3.69 | 3.95 | 4.06 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,127,200K ÷ ($2,320,000K – $1,073,000K)
= 4.11
Terex Corporation's working capital turnover has shown fluctuations over the period analyzed. The ratio indicates how efficiently the company is managing its working capital to generate sales revenue.
The trend reveals an initial decline from 3.40 in March 2020 to 2.66 in December 2020, suggesting a potential inefficiency in utilizing working capital during this period. However, from March 2021 to December 2024, there is a generally increasing trend in working capital turnover, indicating improvements in how efficiently Terex is utilizing its working capital to generate sales.
The ratio peaked at 4.59 in December 2022, reflecting the company's most efficient period in converting its working capital into sales revenue. This indicates that Terex was able to optimize its working capital management during that quarter.
Overall, the upward trend in working capital turnover from the end of 2020 to the end of 2024 suggests positive developments in Terex Corporation's working capital management efficiency and its ability to generate sales revenue from its existing level of working capital.