Twilio Inc (TWLO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,458,040 | 4,153,940 | 3,826,320 | 2,841,840 | 1,761,780 |
| Total current assets | US$ in thousands | 3,447,300 | 4,903,970 | 4,984,090 | 5,932,230 | 3,372,340 |
| Total current liabilities | US$ in thousands | 820,220 | 738,297 | 808,158 | 703,550 | 448,306 |
| Working capital turnover | 1.70 | 1.00 | 0.92 | 0.54 | 0.60 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,458,040K ÷ ($3,447,300K – $820,220K)
= 1.70
The working capital turnover ratio for Twilio Inc exhibits a noteworthy upward trend over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio decreased from 0.60 in 2020 to 0.54 in 2021, indicating a slight reduction in efficiency in utilizing working capital to generate sales during that year. However, starting in 2022, the ratio experienced a significant and consistent increase, reaching 0.92 in 2022, 1.00 in 2023, and ultimately rising to 1.70 in 2024.
This progression suggests that Twilio Inc has become progressively more efficient in leveraging its working capital to support sales activities. The upward trajectory conveys improvements in operational efficiency, possibly resulting from better management of current assets and liabilities, enhanced sales strategies, or more effective cash conversion cycles.
Overall, the rising working capital turnover ratio over the analyzed years reflects a positive trend in operational performance, with the company increasingly utilizing its working capital base more effectively to generate revenue.
Peer comparison
Dec 31, 2024