Tootsie Roll Industries Inc (TR)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 723,217 | 731,326 | 753,728 | 761,829 | 769,365 | 756,064 | 719,616 | 704,219 | 682,799 | 661,217 | 632,419 | 603,539 | 566,043 | 528,309 | 503,016 | 468,252 | 103,169,457 | 103,175,256 | 103,199,372 | 103,226,528 |
| Total current assets | US$ in thousands | 333,605 | 343,404 | 323,877 | 328,540 | 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 |
| Total current liabilities | US$ in thousands | 87,286 | 95,719 | 86,763 | 87,268 | 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 |
| Working capital turnover | 2.94 | 2.95 | 3.18 | 3.16 | 3.13 | 3.28 | 3.22 | 3.10 | 3.12 | 2.97 | 3.19 | 3.09 | 3.01 | 2.88 | 2.49 | 2.07 | 411.28 | 435.86 | 432.67 | 401.50 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $723,217K ÷ ($333,605K – $87,286K)
= 2.94
Tootsie Roll Industries Inc's working capital turnover has shown a fluctuating trend over the past few years. The ratio increased steadily from 401.50 in March 2020 to a peak of 3.28 in September 2023, indicating an efficient management of working capital during this period. However, there was a slight decrease in the ratio by the end of December 2024 to 2.94.
The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher ratio suggests that the company is effectively managing its working capital to support sales growth, while a lower ratio may indicate inefficiencies in managing current assets and liabilities.
In the case of Tootsie Roll Industries Inc, the increasing trend in the working capital turnover ratio until September 2023 indicates improvement in the company's ability to convert working capital into sales. The slight decrease in the ratio by the end of December 2024 may suggest a potential need for closer monitoring of working capital management to sustain efficiency.
Overall, Tootsie Roll Industries Inc's working capital turnover ratio has shown variability but generally reflects a positive trend in working capital management efficiency during the period under review.
Peer comparison
Dec 31, 2024