Tegna Inc (TGNA)

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	2,738,026	2,929,039	3,018,919	3,072,141	3,105,223	2,960,707	2,911,012	2,855,380	2,805,443	2,964,889	2,941,372	2,832,700	2,836,323	2,462,274	2,327,638	2,286,943	2,119,507	2,067,602	2,054,721	2,041,869
Total current assets	US$ in thousands	1,050,320	1,242,400	1,143,900	1,400,010	1,303,710	1,071,050	885,377	768,751	787,589	757,111	698,418	692,961	672,594	763,281	711,057	646,883	707,324	648,331	536,524	519,399
Total current liabilities	US$ in thousands	423,372	357,636	332,744	378,196	391,024	395,031	370,726	379,795	375,132	350,753	317,812	389,241	424,175	399,344	316,538	323,510	361,158	374,839	276,537	323,538
Working capital turnover		4.37	3.31	3.72	3.01	3.40	4.38	5.66	7.34	6.80	7.30	7.73	9.33	11.42	6.77	5.90	7.07	6.12	7.56	7.90	10.43

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,738,026K ÷ ($1,050,320K – $423,372K)
= 4.37

The working capital turnover ratio measures how efficiently a company is able to generate revenue from its working capital. A higher ratio indicates better efficiency in utilizing working capital to generate sales.

TEGNA Inc's working capital turnover has fluctuated over the past eight quarters. In Q4 2023, the working capital turnover was 4.64, which suggests that the company generated $4.64 in sales for every dollar of working capital during that period. This ratio decreased from the previous quarter's value of 3.51 in Q3 2023 but remained higher than the ratios in Q1 and Q2 2023.

Comparing Q4 2023 to the same quarter in the previous year, the working capital turnover decreased from 3.59 to 4.64, indicating an improvement in efficiency in utilizing working capital to generate sales. However, the ratios in the preceding quarters of 2022 were higher, with the highest ratio of 7.81 in Q1 2022.

The decreasing trend in working capital turnover from Q1 2022 to Q4 2023 could suggest that TEGNA Inc may be facing challenges in efficiently utilizing its working capital to generate sales. Further analysis and monitoring of working capital management practices may be necessary to improve operational efficiency and financial performance.