Westinghouse Air Brake Technologies Corp (WAB)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,317,000 | 10,201,000 | 10,031,000 | 9,732,000 | 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 |
| Total current assets | US$ in thousands | 4,943,000 | 4,774,000 | 5,027,000 | 4,799,000 | 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 |
| Total current liabilities | US$ in thousands | 3,792,000 | 3,681,000 | 3,647,000 | 3,153,000 | 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 |
| Working capital turnover | 8.96 | 9.33 | 7.27 | 5.91 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,317,000K ÷ ($4,943,000K – $3,792,000K)
= 8.96
The working capital turnover of Westinghouse Air Brake Technologies Corp has fluctuated over the reviewed periods. The trend shows a peak in the first quarter of the fiscal year ending March 31, 2023, with a ratio of 25.50, indicating that the company generated 25.50 times the revenue from its working capital during that period. This could be a result of effective management of working capital components like inventory, accounts receivable, and accounts payable.
However, the ratio dropped significantly in the subsequent quarters, demonstrating a decrease in efficiency in utilizing working capital to generate revenue. The ratio declined to 5.91 in the first quarter of the fiscal year ending March 31, 2024, suggesting a potential liquidity issue or inefficiency in managing working capital.
Overall, the working capital turnover ratio of Westinghouse Air Brake Technologies Corp has shown variability, which might indicate changes in operational efficiency and effectiveness in managing working capital. Monitoring this ratio over time can help evaluate the company's ability to efficiently utilize its working capital to support operations and generate revenue.
Peer comparison
Dec 31, 2024