Tegna Inc (TGNA)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	3,101,970	2,910,930	3,279,240	2,991,090	2,937,780
Total current assets	US$ in thousands	1,360,410	1,050,320	1,303,710	787,589	672,594
Total current liabilities	US$ in thousands	466,280	423,372	391,024	375,132	424,175
Working capital turnover		3.47	4.64	3.59	7.25	11.83

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,101,970K ÷ ($1,360,410K – $466,280K)
= 3.47

The working capital turnover of Tegna Inc has exhibited a declining trend over the years, as evidenced by the figures from December 31, 2020 (11.83) to December 31, 2024 (3.47). This indicates that the company is generating less revenue relative to its working capital investment. A higher working capital turnover ratio is generally preferred as it signifies more efficient utilization of working capital to generate sales.

The substantial drop in the working capital turnover from 2020 to 2022 suggests a possible inefficiency in managing the working capital during this period. However, there appears to be a slight improvement in 2023 and 2024. It is important for Tegna Inc to closely monitor and analyze the factors contributing to these fluctuations in order to optimize its working capital management efficiency and overall financial performance.