Tootsie Roll Industries Inc (TR)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 766,225 | 688,173 | 571,397 | 472,151 | 529,311 |
| Total current assets | US$ in thousands | 340,651 | 309,028 | 268,301 | 320,872 | 353,330 |
| Total current liabilities | US$ in thousands | 94,888 | 90,134 | 79,968 | 70,021 | 79,544 |
| Working capital turnover | 3.12 | 3.14 | 3.03 | 1.88 | 1.93 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $766,225K ÷ ($340,651K – $94,888K)
= 3.12
Tootsie Roll Industries, Inc.'s working capital turnover has shown a fluctuating trend over the past five years. The ratio has varied from a low of 1.88 in 2020 to a high of 3.14 in 2022. The company's working capital turnover for the most recent year, 2023, stands at 3.13, indicating that the company generated $3.13 in net sales revenue for every $1 of working capital invested. Overall, the increasing trend in working capital turnover from 2019 to 2022 suggests that Tootsie Roll Industries has been managing its working capital more efficiently, efficiently using its current assets to generate sales revenue. This improvement may indicate a tightening of its working capital management practices, leading to potentially better liquidity and operational efficiency. However, the slight decrease in 2023 compared to 2022 warrants further analysis to understand the reasons behind this dip and whether it is a short-term fluctuation or a more concerning trend.
Peer comparison
Dec 31, 2023