Visteon Corp (VC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,866,000 | 3,954,000 | 3,756,000 | 2,773,000 | 2,548,000 |
| Total current assets | US$ in thousands | 1,596,000 | 1,616,000 | 1,710,000 | 1,424,000 | 1,341,000 |
| Total current liabilities | US$ in thousands | 916,000 | 931,000 | 1,035,000 | 852,000 | 824,000 |
| Working capital turnover | 5.69 | 5.77 | 5.56 | 4.85 | 4.93 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,866,000K ÷ ($1,596,000K – $916,000K)
= 5.69
The working capital turnover ratio for Visteon Corp has shown a generally increasing trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio stood at 4.93 in December 31, 2020, and experienced a slight dip to 4.85 by December 31, 2021. However, from December 31, 2021, the ratio exhibited a consistent uptrend, reaching 5.56 by December 31, 2022. This positive trend continued in the subsequent years, with further increases to 5.77 by December 31, 2023, and 5.69 by December 31, 2024.
A higher working capital turnover ratio signifies that Visteon Corp is generating more revenue per dollar of working capital invested, reflecting efficient utilization of its short-term assets and liabilities. This improved efficiency can lead to reduced financing costs and increased profitability, indicating a positive outlook for the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2024