Tractor Supply Company (TSCO)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,555,700 | 14,204,700 | 12,731,100 | 10,620,400 | 8,351,930 |
| Total current assets | US$ in thousands | 3,263,940 | 3,157,780 | 3,250,440 | 3,258,680 | 1,787,890 |
| Total current liabilities | US$ in thousands | 2,177,080 | 2,376,210 | 2,064,840 | 1,743,800 | 1,247,600 |
| Working capital turnover | 13.39 | 18.17 | 10.74 | 7.01 | 15.46 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,555,700K ÷ ($3,263,940K – $2,177,080K)
= 13.39
Tractor Supply Company's working capital turnover has demonstrated varying trends over the past five years. The abrupt increase in working capital turnover from 7.01 in 2020 to 18.17 in 2022 indicates a significant improvement in the efficiency of utilizing working capital to generate sales. This improvement suggests enhanced operational efficiency and a more effective management of the company's current assets and liabilities.
However, the working capital turnover ratio decreased to 13.39 in 2023, which may point towards a slight decline in the efficiency of working capital utilization compared to the previous year. Despite this drop, the ratio remains relatively high, indicating that Tractor Supply Company continues to effectively convert working capital into revenue.
Overall, Tractor Supply Company's working capital turnover has shown strong performance over the years, with occasional fluctuations possibly influenced by changes in the company's operational activities, seasonality, or industry-specific conditions. It is crucial for the company to closely monitor and manage its working capital turnover ratio to uphold sustainable growth and profitability.
Peer comparison
Dec 31, 2023