Viad Corp (VVI)

Working capital turnover

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,206,572	1,201,986	1,217,882	1,230,247	1,145,072	1,059,757	873,248	597,613	488,124	334,814	168,297	138,328	407,336	702,063	1,003,473	1,377,118	1,358,273	1,338,442	1,335,023	1,297,024
Total current assets	US$ in thousands	235,777	318,350	269,192	249,377	239,555	19,400	274,053	205,652	197,616	229,853	108,310	88,821	91,257	117,747	235,052	312,513	260,903	275,914	274,107	251,319
Total current liabilities	US$ in thousands	229,796	266,931	257,086	245,816	211,117	31,701	268,022	214,334	175,126	176,529	135,319	99,347	97,733	99,653	119,267	623,740	237,323	545,708	565,111	483,833
Working capital turnover		201.73	23.38	100.60	345.48	40.27	—	144.79	—	21.70	6.28	—	—	—	38.80	8.67	—	57.60	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,206,572K ÷ ($235,777K – $229,796K)
= 201.73

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.

Viad Corp.'s working capital turnover has fluctuated significantly over the quarters. In Q1 2023, the company achieved a notably high turnover of 340.00, which suggests efficient utilization of working capital to generate revenue. This sharp increase from the previous quarter's turnover of 100.10 indicates a significant improvement in working capital efficiency.

However, in Q2 2023, the working capital turnover dropped to 100.10, reflecting a decrease in efficiency compared to the prior quarter. The ratio then saw a further decline in Q3 2023 to 23.24, indicating a significant deterioration in the company's ability to convert working capital into revenue.

The working capital turnover then rebounded significantly in Q4 2023 to 207.10, indicating a strong resurgence in working capital efficiency. This substantial improvement from the previous two quarters suggests that Viad Corp. may have implemented effective strategies to better utilize its working capital.

Overall, the fluctuating trend in Viad Corp.'s working capital turnover indicates some volatility in the company's working capital management efficiency. It would be important for stakeholders to closely monitor future quarters to assess the sustainability of the improvements seen in Q4 2023 and to identify any underlying factors influencing these fluctuations.