Tootsie Roll Industries Inc (TR)
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 | 766,225 | 759,321 | 723,875 | 708,415 | 688,173 | 666,465 | 637,169 | 608,787 | 571,396 | 406,735 | 380,224 | 345,350 | 345,389 | 345,244 | 369,369 | 394,892 | 392,371 | 518,821 | 518,400 | 518,257 |
| Total current assets | US$ in thousands | 340,651 | 336,060 | 314,591 | 304,496 | 309,028 | 324,066 | 280,757 | 275,661 | 268,301 | 277,904 | 277,466 | 292,332 | 320,872 | 314,792 | 322,709 | 334,290 | 353,330 | 332,306 | 281,089 | 279,976 |
| Total current liabilities | US$ in thousands | 94,888 | 105,634 | 90,995 | 77,328 | 90,134 | 101,519 | 82,474 | 80,259 | 79,968 | 94,637 | 75,599 | 65,941 | 70,021 | 78,074 | 84,192 | 77,186 | 79,544 | 77,409 | 60,287 | 53,049 |
| Working capital turnover | 3.12 | 3.30 | 3.24 | 3.12 | 3.14 | 2.99 | 3.21 | 3.12 | 3.03 | 2.22 | 1.88 | 1.53 | 1.38 | 1.46 | 1.55 | 1.54 | 1.43 | 2.04 | 2.35 | 2.28 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $766,225K ÷ ($340,651K – $94,888K)
= 3.12
Tootsie Roll Industries, Inc.'s working capital turnover over the past eight quarters has shown some fluctuations, ranging from a low of 2.99 in Q3 2022 to a high of 3.31 in Q3 2023. The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates that the company is able to generate more sales revenue with a lower amount of working capital.
In this case, Tootsie Roll Industries, Inc. has generally maintained a healthy working capital turnover ratio above 3, indicating that the company is effectively utilizing its working capital to support its sales activities. This trend suggests that the company is efficient in managing its working capital resources and is able to generate sales revenue at a relatively high rate compared to the amount of working capital it has on hand.
Overall, the consistent levels of working capital turnover above 3 demonstrate Tootsie Roll Industries, Inc.'s ability to efficiently utilize its working capital to drive sales and generate positive operational results over the analyzed period.
Peer comparison
Dec 31, 2023