Tempur Sealy International Inc (TPX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,925,400 | 4,921,200 | 4,930,800 | 3,676,900 | 3,106,000 |
| Total current assets | US$ in thousands | 1,103,200 | 1,195,200 | 1,275,600 | 968,400 | 900,200 |
| Total current liabilities | US$ in thousands | 908,200 | 981,200 | 1,053,400 | 974,800 | 773,300 |
| Working capital turnover | 25.26 | 23.00 | 22.19 | — | 24.48 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,925,400K ÷ ($1,103,200K – $908,200K)
= 25.26
Tempur Sealy International Inc has shown a consistent trend of improvement in its working capital turnover over the past few years. The working capital turnover ratio has increased steadily from 22.19 in 2021 to 25.26 in 2023, indicating that the company is efficiently managing its working capital to generate revenue. This implies that Tempur Sealy International Inc is effectively utilizing its current assets and liabilities to support its operations and sales. The increase in the working capital turnover ratio is a positive indicator of the company's operational efficiency and its ability to convert working capital into sales. This trend suggests that Tempur Sealy International Inc has been successful in optimizing its working capital management, which is crucial for sustainable business growth and financial performance.
Peer comparison
Dec 31, 2023