US Foods Holding Corp (USFD)
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 | 35,334,000 | 34,920,000 | 34,768,000 | 34,604,000 | 33,806,000 | 32,948,000 | 31,936,000 | 30,778,000 | 29,252,000 | 27,747,000 | 25,692,000 | 22,580,000 | 22,648,000 | 23,445,000 | 24,148,000 | 26,052,000 | 25,755,000 | 24,877,000 | 24,499,940 | 30,367,940 |
| Total current assets | US$ in thousands | 4,031,000 | 4,209,000 | 4,082,000 | 4,094,000 | 3,820,000 | 4,298,000 | 4,121,000 | 4,050,000 | 3,594,000 | 4,235,000 | 4,166,000 | 4,084,000 | 3,465,000 | 3,805,000 | 4,422,000 | 3,923,000 | 3,262,000 | 3,560,000 | 3,042,000 | 3,081,000 |
| Total current liabilities | US$ in thousands | 3,112,000 | 3,252,000 | 3,048,000 | 3,052,000 | 2,796,000 | 3,170,000 | 3,016,000 | 3,029,000 | 2,550,000 | 2,852,000 | 2,768,000 | 2,571,000 | 1,982,000 | 2,372,000 | 2,725,000 | 2,027,000 | 2,362,000 | 2,546,000 | 2,216,000 | 2,214,000 |
| Working capital turnover | 38.45 | 36.49 | 33.62 | 33.21 | 33.01 | 29.21 | 28.90 | 30.14 | 28.02 | 20.06 | 18.38 | 14.92 | 15.27 | 16.36 | 14.23 | 13.74 | 28.62 | 24.53 | 29.66 | 35.03 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $35,334,000K ÷ ($4,031,000K – $3,112,000K)
= 38.45
US Foods Holding Corp's working capital turnover ratio has fluctuated over the past few quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio is generally preferred as it suggests efficient management of current assets and liabilities.
Looking at the trend, the working capital turnover ratio has been on an increasing trajectory from 13.74 in March 2020 to 38.45 in December 2023. This trend indicates that the company has improved its efficiency in using its working capital to generate sales in recent quarters.
The sharp increase in the ratio from June 2021 to December 2021, reaching 28.02, suggests significant improvement in working capital management during that period. Subsequently, the ratio continued to rise, reaching its peak at 38.45 in December 2023.
Overall, the increasing trend in the working capital turnover ratio for US Foods Holding Corp reflects a positive development in its operational efficiency and effectiveness in utilizing its working capital to support its sales activities.
Peer comparison
Dec 31, 2023