WESCO International Inc (WCC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,818,800 | 22,385,200 | 21,420,100 | 18,217,500 | 12,326,000 |
| Total current assets | US$ in thousands | 8,351,400 | 8,391,600 | 8,330,540 | 6,350,110 | 5,506,630 |
| Total current liabilities | US$ in thousands | 3,804,000 | 3,388,400 | 3,817,350 | 3,049,810 | 2,986,460 |
| Working capital turnover | 4.80 | 4.47 | 4.75 | 5.52 | 4.89 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,818,800K ÷ ($8,351,400K – $3,804,000K)
= 4.80
WESCO International Inc's working capital turnover has exhibited variations over the years. The ratio indicates how efficiently the company is using its working capital to generate sales revenue.
- In December 31, 2020, the working capital turnover was 4.89, suggesting that the company generated $4.89 in sales for every dollar of working capital invested.
- By December 31, 2021, the ratio increased to 5.52, indicating an improvement in efficiency in utilizing working capital to drive sales.
- However, in December 31, 2022, the figure decreased to 4.75, showing a slight decline in the efficiency of working capital management.
- Further decline was noted by December 31, 2023, with a working capital turnover of 4.47, signaling a potential inefficiency in utilizing working capital to generate revenue.
- The ratio slightly rebounded to 4.80 by December 31, 2024, but still remained below the peak level observed in 2021.
Overall, while there have been fluctuations in WESCO International Inc's working capital turnover, the company has generally maintained a level of efficiency in converting its working capital into sales, with some room for improvement in certain periods.
Peer comparison
Dec 31, 2024