Tractor Supply Company (TSCO)
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 | 14,555,740 | 14,902,280 | 14,761,100 | 14,479,810 | 14,204,720 | 13,517,620 | 13,264,750 | 12,962,900 | 12,731,110 | 20,032,230 | 19,620,870 | 19,195,640 | 18,362,490 | 9,933,870 | 9,311,440 | 8,488,890 | 8,351,920 | 8,293,410 | 8,190,890 | 8,050,360 |
| Total current assets | US$ in thousands | 3,263,940 | 3,534,110 | 3,577,270 | 3,458,920 | 3,157,780 | 3,109,800 | 3,230,400 | 3,168,280 | 3,250,440 | 3,467,860 | 3,567,140 | 3,380,830 | 3,258,680 | 3,170,960 | 3,030,110 | 2,480,240 | 1,787,890 | 2,005,500 | 1,937,810 | 2,079,080 |
| Total current liabilities | US$ in thousands | 2,177,080 | 2,318,800 | 2,237,460 | 2,349,700 | 2,376,210 | 2,095,200 | 2,242,180 | 2,199,660 | 2,064,840 | 2,046,010 | 2,083,530 | 1,975,920 | 1,743,800 | 2,132,660 | 2,157,050 | 1,494,120 | 1,247,600 | 1,251,720 | 1,271,390 | 1,311,930 |
| Working capital turnover | 13.39 | 12.26 | 11.02 | 13.05 | 18.17 | 13.32 | 13.42 | 13.38 | 10.74 | 14.09 | 13.23 | 13.66 | 12.12 | 9.57 | 10.67 | 8.61 | 15.46 | 11.00 | 12.29 | 10.49 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,555,740K ÷ ($3,263,940K – $2,177,080K)
= 13.39
Tractor Supply Company's working capital turnover ratio has shown fluctuations over the past five years, with values ranging from 8.61 to 18.17. A higher turnover ratio indicates that the company efficiently utilizes its working capital to generate sales revenue. The peak ratio of 18.17 in December 2022 suggests a strong performance in converting working capital into sales during that period.
However, the ratio fluctuated in subsequent periods, showing a decreasing trend from December 2022 to March 2023 and then increasing again until September 2023. This variability could be due to changes in the company's operating efficiency, sales growth, or management of working capital.
Overall, a working capital turnover ratio above 10 suggests that Tractor Supply Company is effectively managing its working capital to support its sales operations. Analyzing trends in this ratio can provide insights into the company's operational efficiency and financial health over time.
Peer comparison
Dec 31, 2023