WESCO International Inc (WCC)
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 | 21,818,800 | 21,792,500 | 21,947,500 | 22,213,300 | 22,385,200 | 22,470,290 | 22,271,810 | 22,009,810 | 21,420,090 | 20,713,520 | 19,995,920 | 19,108,210 | 18,217,510 | 17,494,430 | 16,907,910 | 14,398,830 | 12,326,000 | 10,296,610 | 8,302,920 | 8,366,310 |
| Total current assets | US$ in thousands | 8,351,400 | 8,683,500 | 8,536,100 | 8,912,800 | 8,391,600 | 8,611,400 | 8,583,400 | 8,448,100 | 8,330,540 | 7,897,090 | 7,606,480 | 6,878,970 | 6,350,110 | 6,215,500 | 5,995,750 | 5,575,140 | 5,506,630 | 5,597,450 | 5,438,390 | 2,777,480 |
| Total current liabilities | US$ in thousands | 3,804,000 | 3,928,500 | 3,748,300 | 4,035,900 | 3,388,400 | 3,653,600 | 3,581,700 | 3,538,900 | 3,817,350 | 3,567,570 | 3,592,830 | 3,262,130 | 3,049,810 | 3,138,100 | 3,301,960 | 2,726,010 | 2,986,460 | 2,540,940 | 2,301,730 | 1,040,500 |
| Working capital turnover | 4.80 | 4.58 | 4.58 | 4.55 | 4.47 | 4.53 | 4.45 | 4.48 | 4.75 | 4.78 | 4.98 | 5.28 | 5.52 | 5.68 | 6.28 | 5.05 | 4.89 | 3.37 | 2.65 | 4.82 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $21,818,800K ÷ ($8,351,400K – $3,804,000K)
= 4.80
The working capital turnover of WESCO International Inc has displayed fluctuations over the period provided. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively using its working capital to support sales activities.
In the period from March 31, 2020, to June 30, 2020, there was a decline in the working capital turnover ratio from 4.82 to 2.65, indicating a potential decrease in efficiency in the utilization of working capital during this period. However, the ratio improved in the subsequent quarters, reaching its peak of 6.28 on June 30, 2021, before gradually stabilizing around the range of 4.45 to 4.80 from June 30, 2024, to December 31, 2024.
Overall, WESCO International Inc has shown varying levels of efficiency in utilizing its working capital to generate sales revenue during the period under review. It would be important for the company to monitor and manage its working capital effectively to ensure optimal utilization and operational performance.
Peer comparison
Dec 31, 2024