WESCO International Inc (WCC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,385,200 | 21,420,100 | 18,226,400 | 12,326,000 | 8,358,920 |
| Total current assets | US$ in thousands | 8,391,600 | 8,330,500 | 6,350,110 | 5,506,980 | 2,540,410 |
| Total current liabilities | US$ in thousands | 3,388,400 | 3,817,300 | 3,049,810 | 2,987,000 | 1,084,060 |
| Working capital turnover | 4.47 | 4.75 | 5.52 | 4.89 | 5.74 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,385,200K ÷ ($8,391,600K – $3,388,400K)
= 4.47
The working capital turnover of Wesco International, Inc. has exhibited a decreasing trend over the past five years, from 5.74 in 2019 to 4.47 in 2023. This implies a decline in the efficiency of the company in managing its working capital to generate sales revenue.
A high working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales. Conversely, a declining ratio may suggest inefficiencies in managing inventory, receivables, and payables.
It is essential for Wesco International, Inc. to closely monitor its working capital turnover ratio and identify areas where improvements can be made to enhance efficiency and optimize its working capital management strategies.
Peer comparison
Dec 31, 2023