Westinghouse Air Brake Technologies Corp (WAB)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,364,000 | 9,432,000 | 8,179,000 | 7,657,000 | 7,339,800 |
| Total current assets | US$ in thousands | 4,943,000 | 4,855,000 | 4,327,000 | 3,832,000 | 3,880,000 |
| Total current liabilities | US$ in thousands | 3,792,000 | 4,056,000 | 3,467,000 | 2,910,000 | 3,226,000 |
| Working capital turnover | 9.00 | 11.80 | 9.51 | 8.30 | 11.22 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,364,000K ÷ ($4,943,000K – $3,792,000K)
= 9.00
The working capital turnover ratio for Westinghouse Air Brake Technologies Corp has shown fluctuations over the years. The ratio was 11.22 in December 31, 2020, indicating that the company generated $11.22 of revenue for every dollar of working capital invested during that period.
However, there was a decrease in the ratio to 8.30 in December 31, 2021, suggesting that the company's efficiency in utilizing working capital to generate revenue decreased.
In December 31, 2022, the ratio improved to 9.51, indicating a better utilization of working capital compared to the previous year.
By December 31, 2023, the ratio increased significantly to 11.80, showing a very efficient utilization of working capital to generate revenue.
In the most recent year reported, December 31, 2024, the working capital turnover ratio dropped to 9.00, signaling a slight decrease in efficiency compared to the prior year.
Overall, the trend in the working capital turnover ratio reflects fluctuations in the company's ability to efficiently convert its working capital into revenue over the years, with some years showing better efficiency than others.
Peer comparison
Dec 31, 2024