Waters Corporation (WAT)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,922,900	2,842,300	2,892,160	2,735,940	2,309,300
Total current assets	US$ in thousands	1,669,110	1,752,870	1,763,900	1,628,940	1,401,030
Total current liabilities	US$ in thousands	789,758	789,580	785,737	680,508	804,983
Working capital turnover		3.32	2.95	2.96	2.88	3.87

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,922,900K ÷ ($1,669,110K – $789,758K)
= 3.32

Waters Corporation's working capital turnover has shown some fluctuations over the years. The working capital turnover ratio is used to assess how efficiently a company is utilizing its working capital to generate sales revenue.

In this case, the trend indicates that in December 31, 2020, the company had a working capital turnover of 3.87, which means that for every dollar of working capital, the company generated $3.87 in sales revenue.

As of December 31, 2021, the working capital turnover decreased to 2.88, suggesting a potential decrease in efficiency in utilizing working capital to generate sales.

However, the ratio slightly improved in 2022 to 2.96 and stayed relatively stable around 2.95 in 2023. The most recent data for December 31, 2024, shows a significant increase in the working capital turnover to 3.32, indicating a potential improvement in the company's efficiency in utilizing its working capital to generate sales.

Overall, despite some fluctuations, the working capital turnover ratio for Waters Corporation has remained relatively healthy, and the recent increase in the ratio may suggest improved efficiency in managing working capital to drive sales revenue.