TKO Group Holdings, Inc. (TKO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,804,340 | 1,674,970 | 1,140,150 | 1,031,940 | 891,154 |
| Total current assets | US$ in thousands | 869,567 | 492,430 | 268,300 | 948,258 | 726,852 |
| Total current liabilities | US$ in thousands | 670,657 | 472,140 | 230,179 | 187,320 | 497,474 |
| Working capital turnover | 14.10 | 82.55 | 29.91 | 1.36 | 3.89 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,804,340K ÷ ($869,567K – $670,657K)
= 14.10
TKO Group Holdings, Inc.'s working capital turnover has shown significant fluctuations over the years. At the end of December 2020, the company's working capital turnover ratio was 3.89, indicating that the company turned over its working capital 3.89 times during that period. However, by the end of December 2021, the ratio dropped to 1.36, suggesting a decrease in the efficiency of utilizing working capital.
The company saw a remarkable improvement in its working capital turnover in the following years. By the end of December 2022, the ratio surged to 29.91, signifying a substantial increase in the efficiency of working capital management. This trend continued to improve drastically as of December 2023, with a working capital turnover ratio of 82.55, indicating that the company effectively utilized its working capital almost 83 times during that period.
In December 2024, there was a decline in the working capital turnover ratio to 14.10. While this is a decrease from the previous year, the ratio still reflects a relatively efficient utilization of working capital.
Overall, TKO Group Holdings, Inc. has experienced significant fluctuations in its working capital turnover ratio. The company showed remarkable improvement in utilizing its working capital efficiently in 2022 and 2023, although there was a slight decline in 2024. Further analysis would be required to understand the factors driving these fluctuations and their implications for the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2024