Vontier Corp (VNT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,970,600 | 3,081,000 | 3,083,800 | 2,921,100 | 2,671,300 |
| Total current assets | US$ in thousands | 1,370,000 | 1,332,500 | 1,385,000 | 1,478,200 | 1,182,100 |
| Total current liabilities | US$ in thousands | 909,200 | 955,300 | 929,900 | 933,400 | 838,300 |
| Working capital turnover | 6.45 | 8.17 | 6.78 | 5.36 | 7.77 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,970,600K ÷ ($1,370,000K – $909,200K)
= 6.45
The working capital turnover of Vontier Corp has shown fluctuations over the past five years. The ratio decreased from 7.77 in 2020 to 5.36 in 2021, indicating a decrease in the company's efficiency in utilizing its working capital to generate sales. However, the ratio improved in 2022 to 6.78, suggesting a better utilization of working capital during that period. Subsequently, in 2023, the ratio further increased to 8.17, demonstrating a significant improvement in the efficiency of working capital turnover. However, in 2024, the ratio declined to 6.45, which may suggest a slight decrease in the efficiency of working capital management compared to the previous year. Overall, the trend in Vontier Corp's working capital turnover ratio shows some volatility, but it is essential for the company to consistently monitor and optimize its working capital utilization to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2024