Trimble Inc (TRMB)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,683,300 | 3,798,700 | 3,676,300 | 3,659,100 | 3,147,700 |
| Total current assets | US$ in thousands | 2,270,400 | 1,830,900 | 1,518,200 | 1,450,600 | 1,281,400 |
| Total current liabilities | US$ in thousands | 1,788,000 | 1,829,300 | 1,462,100 | 1,188,600 | 1,311,300 |
| Working capital turnover | 7.64 | 2,374.19 | 65.53 | 13.97 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,683,300K ÷ ($2,270,400K – $1,788,000K)
= 7.64
The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. In the case of Trimble Inc, there has been a significant fluctuation in the working capital turnover over the years.
- In December 31, 2020, the working capital turnover was not available (denoted as "—"), indicating a lack of data or potentially a significant change in the company's working capital management.
- By December 31, 2021, the working capital turnover improved to 13.97, suggesting that Trimble Inc was able to generate $13.97 in revenue for every dollar of working capital invested.
- By December 31, 2022, there was a substantial increase in the working capital turnover to 65.53, indicating a significant improvement in the efficiency of working capital utilization.
- The ratio reached a staggering 2,374.19 by December 31, 2023, reflecting a remarkable surge in the utilization of working capital to generate sales.
- However, by December 31, 2024, the working capital turnover dropped to 7.64, which may indicate a decrease in efficiency in working capital management or changes in the company's operating environment.
Overall, Trimble Inc's working capital turnover has shown fluctuations over the years, with significant improvements in some periods and potential challenges in others. Further analysis of the company's working capital management practices and operational performance may help provide deeper insights into these fluctuations.
Peer comparison
Dec 31, 2024