Tegna Inc (TGNA)

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	3,101,971	2,957,296	2,863,712	2,884,855	2,910,930	3,102,206	3,192,074	3,245,449	3,279,245	3,136,762	3,090,138	3,038,165	2,991,093	3,154,021	3,135,923	2,980,642	2,937,780	2,694,160	2,507,628	2,466,933
Total current assets	US$ in thousands	1,360,410	1,215,740	1,099,010	1,095,990	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
Total current liabilities	US$ in thousands	466,280	466,710	425,777	433,978	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
Working capital turnover		3.47	3.95	4.25	4.36	4.64	3.51	3.94	3.18	3.59	4.64	6.00	7.81	7.25	7.76	8.24	9.81	11.83	7.40	6.36	7.63

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,101,971K ÷ ($1,360,410K – $466,280K)
= 3.47

The working capital turnover of Tegna Inc has exhibited fluctuations over the periods outlined. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio implies that the company is effectively managing its working capital to support its operations.

Based on the trend observed, the working capital turnover ratio peaked at 11.83 on December 31, 2020, indicating strong efficiency in converting working capital into sales. However, the ratio experienced a notable decline in subsequent periods, reaching a low of 3.18 on March 31, 2023. This significant decrease suggests potential challenges in effectively utilizing working capital to drive sales during this period.

Subsequently, the ratio showed some recovery, reaching 4.36 on March 31, 2024. However, it remained below the levels observed in the earlier periods. The declining trend in the working capital turnover ratio may raise concerns about the company's ability to optimize its working capital to support operations and generate revenue efficiently.

Overall, Tegna Inc should focus on enhancing its working capital management practices to improve the efficiency of its operations and maximize the utilization of available resources. This could involve streamlining inventory management, optimizing accounts receivable and payable processes, and implementing effective working capital strategies to enhance profitability and financial performance.