Vulcan Materials Company (VMC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,781,900 | 7,315,200 | 5,552,200 | 4,856,800 | 4,929,100 |
| Total current assets | US$ in thousands | 2,524,900 | 1,902,000 | 1,696,600 | 2,277,200 | 1,379,330 |
| Total current liabilities | US$ in thousands | 797,600 | 956,600 | 769,300 | 1,047,900 | 535,563 |
| Working capital turnover | 4.51 | 7.74 | 5.99 | 3.95 | 5.84 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,781,900K ÷ ($2,524,900K – $797,600K)
= 4.51
The working capital turnover ratio for Vulcan Materials Co has fluctuated over the past five years. In 2023, the ratio stood at 4.51, representing a decrease from the previous year's ratio of 7.74 in 2022. This suggests that the company generated $4.51 in revenue for every dollar of working capital in 2023, a decrease from $7.74 in 2022.
Although the working capital turnover ratio decreased in 2023, it still indicates that Vulcan Materials Co efficiently utilizes its working capital to generate revenue. The company had a peak performance in 2022, reflecting a significant increase in its working capital efficiency compared to the other years, with the highest ratio of 7.74.
Overall, the trend in working capital turnover suggests that Vulcan Materials Co has been effectively managing its working capital to support revenue generation, albeit with some fluctuations in efficiency levels over the period. It is important for the company to monitor and improve its working capital turnover to ensure optimal utilization of resources for future growth and profitability.
Peer comparison
Dec 31, 2023