Vontier Corp (VNT)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,992,600 | 2,992,500 | 3,008,700 | 3,112,800 | 3,100,500 | 3,179,200 | 3,181,800 | 3,158,900 | 3,134,400 | 3,074,800 | 3,055,300 | 2,985,100 | 2,922,900 |
| Total current assets | US$ in thousands | 1,370,000 | 1,343,000 | 1,292,600 | 1,361,400 | 1,332,500 | 1,303,200 | 1,276,200 | 1,339,500 | 1,385,000 | 1,340,000 | 1,345,900 | 1,257,100 | 1,478,200 |
| Total current liabilities | US$ in thousands | 909,200 | 818,200 | 766,600 | 865,100 | 955,300 | 867,700 | 846,200 | 883,100 | 929,900 | 875,300 | 850,100 | 848,300 | 933,400 |
| Working capital turnover | 6.49 | 5.70 | 5.72 | 6.27 | 8.22 | 7.30 | 7.40 | 6.92 | 6.89 | 6.62 | 6.16 | 7.30 | 5.37 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,992,600K ÷ ($1,370,000K – $909,200K)
= 6.49
Vontier Corp's working capital turnover ratio has shown varying trends over the reported periods. The ratio measures the efficiency with which the company utilizes its working capital to generate sales revenue.
From December 31, 2021, to March 31, 2022, there was a significant increase in the working capital turnover ratio from 5.37 to 7.30, indicating an improvement in the company's ability to generate sales with the same level of working capital. This could signify more efficient cash flow management or better inventory control during this period.
The ratio fluctuated slightly over the subsequent quarters, with values ranging from 6.16 to 6.92. These fluctuations suggest some variability in the company's operational efficiency or changes in its working capital management practices.
The working capital turnover ratio reached its peak of 8.22 on December 31, 2023, indicating a strong performance in converting working capital into sales. This could be attributed to effective working capital management strategies or improved sales generation processes during that period.
However, by September 30, 2024, the ratio had declined to 5.70, suggesting a potential decrease in operational efficiency or a change in the company's working capital structure.
Overall, the trend in Vontier Corp's working capital turnover ratio indicates some level of volatility in the company's ability to efficiently utilize its working capital to drive sales, warranting further analysis to understand the factors influencing these fluctuations.
Peer comparison
Dec 31, 2024