Verra Mobility Corp (VRRM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 879,207 | 817,310 | 741,598 | 550,590 | 393,593 |
| Total current assets | US$ in thousands | 393,999 | 439,538 | 362,594 | 348,069 | 328,037 |
| Total current liabilities | US$ in thousands | 199,741 | 214,773 | 186,809 | 175,191 | 64,040 |
| Working capital turnover | 4.53 | 3.64 | 4.22 | 3.18 | 1.49 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $879,207K ÷ ($393,999K – $199,741K)
= 4.53
The working capital turnover of Verra Mobility Corp has shown a positive trend over the past five years. The ratio has increased steadily from 1.49 in December 31, 2020, to 4.53 in December 31, 2024. This indicates that the company is efficiently utilizing its working capital to generate revenue.
A working capital turnover ratio above 1 implies that the company is effectively using its current assets to support its revenue generation activities. The increasing trend suggests that Verra Mobility Corp has been able to improve its efficiency in managing its working capital over the years.
An uptrend in the working capital turnover ratio can signify that the company is able to quickly convert its current assets into revenue, which is a positive indicator of operational efficiency. This improvement may result from better inventory management, tighter control over receivables, or more efficient utilization of payables.
Overall, the rising working capital turnover for Verra Mobility Corp reflects commendable management of its working capital resources to drive business operations and revenue growth effectively.
Peer comparison
Dec 31, 2024