Trimble Inc (TRMB)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,798,700 | 3,676,300 | 3,659,400 | 3,152,000 | 3,271,300 |
| Total current assets | US$ in thousands | 1,830,900 | 1,518,200 | 1,450,600 | 1,281,400 | 1,211,800 |
| Total current liabilities | US$ in thousands | 1,829,300 | 1,462,100 | 1,188,600 | 1,311,300 | 1,190,300 |
| Working capital turnover | 2,374.19 | 65.53 | 13.97 | — | 152.15 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,798,700K ÷ ($1,830,900K – $1,829,300K)
= 2,374.19
The working capital turnover ratio for Trimble Inc has shown significant fluctuation over the past five years. In 2019, the ratio was at a high of 152.15, indicating that the company was effectively utilizing its working capital to generate revenue. However, this ratio dropped drastically in 2020 to an undisclosed figure, possibly implying a change in the company's working capital management.
Subsequently, in 2021, there was a notable improvement in the working capital turnover ratio to 13.97, suggesting that Trimble Inc was able to enhance its efficiency in utilizing working capital to generate sales. This improvement continued in 2022, with the ratio further increasing to 65.53, indicating a continued focus on optimizing working capital efficiency.
The most recent data for 2023 reveals a sharp increase in the working capital turnover ratio to 2,374.19, highlighting a substantial enhancement in the company's ability to convert working capital into revenue. This significant surge may indicate a more aggressive approach in managing working capital or a change in business operations that positively impacted the efficiency of working capital utilization.
Overall, the trend in Trimble Inc's working capital turnover ratio suggests varying levels of effectiveness in utilizing working capital to generate revenue over the past five years. However, the recent sharp increase in 2023 could indicate a strong focus on optimizing working capital efficiency and maximizing revenue generation.
Peer comparison
Dec 31, 2023