Vontier Corp (VNT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,081,000 | 3,083,800 | 2,921,100 | 2,671,300 |
| Total current assets | US$ in thousands | 1,332,500 | 1,385,000 | 1,478,200 | 1,182,100 |
| Total current liabilities | US$ in thousands | 955,300 | 929,900 | 933,400 | 838,300 |
| Working capital turnover | 8.17 | 6.78 | 5.36 | 7.77 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,081,000K ÷ ($1,332,500K – $955,300K)
= 8.17
Vontier Corporation's working capital turnover has shown fluctuations over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its current assets to support its operations.
In 2019, Vontier had a significantly high working capital turnover ratio of 17.58, suggesting strong efficiency in utilizing its current assets to generate sales. However, this ratio decreased in the following years, reaching its lowest point in 2021 at 5.49. This decline may indicate potential inefficiencies in managing working capital during that year.
The ratio showed an improvement in 2022 and 2023, with figures of 7.00 and 8.21, respectively. These increases suggest that Vontier improved its working capital management, leading to higher turnover and better utilization of current assets to drive sales growth.
Overall, Vontier Corporation's working capital turnover ratio has fluctuated over the past five years, indicating varying degrees of efficiency in managing working capital. It is essential for the company to consistently monitor and optimize its working capital utilization to ensure sustainable operational performance and financial health.
Peer comparison
Dec 31, 2023