Visteon Corp (VC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,954,000 | 3,756,000 | 2,773,000 | 2,548,000 | 2,945,000 |
| Total current assets | US$ in thousands | 1,616,000 | 1,710,000 | 1,424,000 | 1,341,000 | 1,345,000 |
| Total current liabilities | US$ in thousands | 931,000 | 1,035,000 | 852,000 | 824,000 | 798,000 |
| Working capital turnover | 5.77 | 5.56 | 4.85 | 4.93 | 5.38 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,954,000K ÷ ($1,616,000K – $931,000K)
= 5.77
The working capital turnover of Visteon Corp. has shown a fluctuating trend over the past five years, ranging from 4.85 to 5.77. This ratio indicates the company's efficiency in utilizing its working capital to generate sales revenue. A higher turnover ratio generally signifies that the company is effectively managing its working capital and efficiently converting it into sales.
In 2023, the working capital turnover increased to 5.77 from 5.56 in 2022, reflecting an improvement in the company's ability to convert its working capital into sales revenue. This may suggest better inventory management and accounts receivable collections. However, the ratio in 2023 is lower than the ratio recorded in 2019, indicating a potential decrease in efficiency compared to the previous year.
Overall, Visteon Corp.'s working capital turnover has been relatively healthy, although there have been fluctuations in recent years. It is important for the company to continue monitoring and optimizing its working capital management to sustain and enhance its operational efficiency.
Peer comparison
Dec 31, 2023