Westinghouse Air Brake Technologies Corp (WAB)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,432,000 | 8,179,000 | 7,657,000 | 7,339,800 | 7,952,000 |
| Total current assets | US$ in thousands | 4,855,000 | 4,327,000 | 3,832,000 | 3,880,000 | 4,192,100 |
| Total current liabilities | US$ in thousands | 4,056,000 | 3,467,000 | 2,910,000 | 3,226,000 | 3,258,000 |
| Working capital turnover | 11.80 | 9.51 | 8.30 | 11.22 | 8.51 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,432,000K ÷ ($4,855,000K – $4,056,000K)
= 11.80
The working capital turnover of Westinghouse Air Brake Technologies Corp has fluctuated over the past five years, ranging from 8.48 to 12.11. This ratio indicates how effectively the company is utilizing its working capital to generate revenue. A higher turnover ratio suggests that the company is efficiently managing its working capital by generating more revenue per dollar of working capital invested.
In 2023, the working capital turnover of 12.11 is the highest among the five years, indicating that the company has been able to generate significant revenue relative to its working capital. This may suggest improved efficiency in managing its current assets and liabilities to support its operations.
On the other hand, in 2021, the working capital turnover decreased to 8.48, signaling a relative decrease in the efficiency of working capital utilization compared to the preceding years. The working capital turnover rebounded in 2022 to 9.72 and continued to improve in 2023.
Overall, the trend in the working capital turnover ratio for Westinghouse Air Brake Technologies Corp indicates fluctuations in the efficiency of working capital management over the past five years, with a notable increase observed in 2023 compared to prior years.
Peer comparison
Dec 31, 2023