Viad Corp (VVI)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,206,610	1,135,550	488,274	412,106	1,358,970
Total current assets	US$ in thousands	235,777	239,555	197,616	91,257	260,903
Total current liabilities	US$ in thousands	229,796	211,117	175,126	97,733	237,323
Working capital turnover		201.74	39.93	21.71	—	57.63

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,206,610K ÷ ($235,777K – $229,796K)
= 201.74

The working capital turnover ratio for Viad Corp. has shown a significant increase over the past five years, indicating a positive trend in the company's efficiency in utilizing its working capital. In particular, the ratio has increased from 22.56 in 2021 to 39.64 in 2022, and then substantially to 207.10 in 2023. This implies that Viad Corp. generated $207.10 in revenue for every dollar of working capital invested in 2023.

The notable increase in the working capital turnover ratio suggests that Viad Corp. has been able to efficiently manage its working capital to support its operations and generate higher sales revenue. This improved efficiency may stem from more effective inventory management, faster collection of receivables, or better utilization of payables.

Overall, the upward trend in Viad Corp.'s working capital turnover ratio indicates that the company has been successful in optimizing its working capital usage, which could lead to improved profitability and financial performance in the long run.