TKO Group Holdings, Inc. (TKO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,804,341 | 2,776,145 | 2,543,972 | 1,997,996 | 1,675,015 | 1,332,786 | 1,224,385 | 1,187,258 | 1,140,147 | 1,178,633 | 1,093,787 | 1,091,269 | 1,095,174 |
| Total current assets | US$ in thousands | 869,567 | 893,817 | 749,166 | 581,760 | 492,430 | 501,000 | 290,577 | 245,342 | 268,300 | 657,263 | 678,526 | 650,921 | 627,256 |
| Total current liabilities | US$ in thousands | 670,657 | 763,433 | 753,188 | 590,491 | 472,140 | 399,500 | 225,532 | 209,731 | 230,179 | 448,969 | 425,204 | 426,847 | 415,817 |
| Working capital turnover | 14.10 | 21.29 | — | — | 82.55 | 13.13 | 18.82 | 33.34 | 29.91 | 5.66 | 4.32 | 4.87 | 5.18 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,804,341K ÷ ($869,567K – $670,657K)
= 14.10
TKO Group Holdings, Inc.'s working capital turnover has fluctuated over the periods indicated. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.
The trend of the working capital turnover ratio for TKO Group Holdings, Inc. shows an increase from December 31, 2021, to March 31, 2022, indicating a more efficient use of working capital during that period. However, there was a slight decrease in the ratio by June 30, 2022.
Notably, by December 31, 2022, there was a significant jump in the working capital turnover ratio, indicating a substantial improvement in the company's working capital efficiency. This trend continued into the first quarter of 2023.
However, by June 30, 2023, there was a notable decrease in the working capital turnover ratio, which suggests a potential decrease in efficiency in utilizing working capital to generate sales. This trend continued into September 30, 2023, wherein the ratio further declined.
By December 31, 2023, there was a significant spike in the working capital turnover ratio, reaching a high level of 82.55, signifying a substantial improvement in efficiency. However, this uptrend was not sustained, as indicated by the subsequent decline in the ratio in the following periods.
Overall, the working capital turnover ratio of TKO Group Holdings, Inc. has shown volatility over the periods analyzed, with periods of both improvement and decline in working capital efficiency. Further analysis and consideration of the company's operational and financial activities would be necessary to provide a more in-depth understanding of the factors influencing these fluctuations.
Peer comparison
Dec 31, 2024