Westinghouse Air Brake Technologies Corp (WAB)
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 | 9,433,000 | 9,244,000 | 8,784,000 | 8,442,000 | 8,182,000 | 7,955,700 | 7,790,000 | 7,757,800 | 7,664,100 | 7,587,500 | 7,552,200 | 7,268,200 | 7,339,800 | 7,743,100 | 7,858,800 | 8,349,740 | 8,022,180 | 6,771,660 | 5,880,540 | 4,781,280 |
| Total current assets | US$ in thousands | 4,855,000 | 4,634,000 | 4,663,000 | 4,496,000 | 4,327,000 | 4,199,000 | 4,046,000 | 3,911,000 | 3,832,000 | 3,760,100 | 3,808,200 | 3,779,000 | 3,880,000 | 3,936,200 | 3,969,700 | 4,241,100 | 4,192,100 | 4,410,400 | 4,229,140 | 4,381,140 |
| Total current liabilities | US$ in thousands | 4,056,000 | 3,891,000 | 4,173,000 | 4,165,000 | 3,467,000 | 3,328,000 | 3,190,000 | 2,880,000 | 2,910,000 | 2,811,600 | 2,844,700 | 3,168,900 | 3,226,000 | 3,228,600 | 3,483,200 | 2,981,600 | 3,258,000 | 3,198,900 | 3,211,320 | 3,254,440 |
| Working capital turnover | 11.81 | 12.44 | 17.93 | 25.50 | 9.51 | 9.13 | 9.10 | 7.52 | 8.31 | 8.00 | 7.84 | 11.91 | 11.22 | 10.94 | 16.15 | 6.63 | 8.59 | 5.59 | 5.78 | 4.24 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,433,000K ÷ ($4,855,000K – $4,056,000K)
= 11.81
The working capital turnover of Westinghouse Air Brake Technologies Corp has shown a consistent upward trend over the past eight quarters, indicating the company's ability to efficiently utilize its working capital to generate sales.
The working capital turnover ratio was 12.11 in Q4 2023, which means that for every dollar of working capital, the company generated $12.11 in sales during that quarter. This ratio improved from the previous quarter's ratio of 12.73 and continued the positive trend seen over the past few quarters.
In Q2 2023, the working capital turnover ratio spiked to 18.34, the highest in the given period. This suggests that the company significantly improved its efficiency in using its working capital to drive sales during that quarter. The trend continued in Q1 2023, with a working capital turnover ratio of 26.07, indicating a further increase in the company's ability to generate sales relative to its working capital.
Comparing the current ratios to the same quarters in the prior year, there has been a notable improvement. For example, in Q4 2022, the working capital turnover ratio was 9.72, which has steadily increased to 12.11 in Q4 2023.
Overall, the increasing trend in working capital turnover reflects positively on Westinghouse Air Brake Technologies Corp's operational efficiency and effective management of working capital to drive sales growth.
Peer comparison
Dec 31, 2023