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

Company name
Symbol
Working capital turnover
Westinghouse Air Brake Technologies Corp
WAB
11.80
Greenbrier Companies Inc
GBX
23.51
Trinity Industries Inc
TRN
16.36