Tempur Sealy International Inc (TPX)
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 | 4,925,400 | 4,942,300 | 4,948,500 | 4,889,800 | 4,921,200 | 5,093,400 | 5,168,400 | 5,126,500 | 4,930,800 | 4,628,200 | 4,402,200 | 3,898,300 | 3,676,900 | 3,491,200 | 3,179,900 | 3,237,500 | 3,106,000 | 2,910,800 | 2,819,300 | 2,766,200 |
| Total current assets | US$ in thousands | 1,103,200 | 1,247,700 | 1,254,100 | 1,270,600 | 1,195,200 | 1,276,400 | 1,305,200 | 1,218,800 | 1,275,600 | 1,482,800 | 925,700 | 1,214,300 | 968,400 | 1,148,100 | 945,500 | 1,046,400 | 900,200 | 960,500 | 891,700 | 853,000 |
| Total current liabilities | US$ in thousands | 908,200 | 1,058,900 | 1,006,700 | 1,022,800 | 981,200 | 1,077,900 | 1,057,100 | 1,101,100 | 1,053,400 | 1,159,400 | 858,300 | 895,700 | 974,800 | 1,026,700 | 1,001,700 | 750,400 | 773,300 | 848,000 | 738,700 | 725,500 |
| Working capital turnover | 25.26 | 26.18 | 20.00 | 19.73 | 23.00 | 25.66 | 20.83 | 43.56 | 22.19 | 14.31 | 65.31 | 12.24 | — | 28.76 | — | 10.94 | 24.48 | 25.87 | 18.43 | 21.70 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,925,400K ÷ ($1,103,200K – $908,200K)
= 25.26
To analyze Tempur Sealy International Inc's working capital turnover over the past eight quarters, we observe that there have been fluctuations in the ratio. On average, the working capital turnover for the company ranged from a low of 19.73 in Q1 2023 to a high of 43.56 in Q1 2022.
The working capital turnover ratio indicates how efficiently the company is using its working capital to generate sales. A higher ratio suggests that the company is effectively managing its working capital to support its sales activities, while a lower ratio may indicate inefficiencies in managing the working capital.
In this case, we see that the working capital turnover ratio peaked in Q1 2022 at 43.56, indicating that Tempur Sealy International Inc was efficiently utilizing its working capital to generate sales during that quarter. However, the ratio dropped in subsequent quarters before picking up again in Q3 2022.
The fluctuations in the working capital turnover ratio suggest that the company's working capital management strategies may have varied over the quarters. Further analysis would be required to understand the specific factors contributing to these fluctuations and to assess the overall effectiveness of Tempur Sealy International Inc's working capital management.
Peer comparison
Dec 31, 2023