WESCO International Inc (WCC)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 22,385,200 | 22,470,320 | 22,271,820 | 22,009,820 | 21,420,120 | 20,722,450 | 20,004,870 | 19,117,160 | 18,226,440 | 17,494,430 | 16,907,910 | 14,398,830 | 12,326,000 | 10,296,610 | 8,302,920 | 8,366,300 | 8,358,920 | 8,270,920 | 8,190,050 | 8,143,950 |
| Total current assets | US$ in thousands | 8,391,600 | 8,611,400 | 8,583,400 | 8,448,100 | 8,330,500 | 7,897,090 | 7,606,480 | 6,878,970 | 6,350,110 | 6,215,500 | 5,995,750 | 5,575,140 | 5,506,980 | 5,597,450 | 5,438,390 | 2,777,480 | 2,540,410 | 2,578,480 | 2,584,860 | 2,513,750 |
| Total current liabilities | US$ in thousands | 3,388,400 | 3,653,600 | 3,581,700 | 3,538,900 | 3,817,300 | 3,567,570 | 3,592,830 | 3,262,130 | 3,049,810 | 3,138,100 | 3,301,960 | 2,726,010 | 2,987,000 | 2,540,940 | 2,301,730 | 1,040,500 | 1,084,060 | 1,104,520 | 1,124,830 | 1,150,720 |
| Working capital turnover | 4.47 | 4.53 | 4.45 | 4.48 | 4.75 | 4.79 | 4.98 | 5.29 | 5.52 | 5.68 | 6.28 | 5.05 | 4.89 | 3.37 | 2.65 | 4.82 | 5.74 | 5.61 | 5.61 | 5.97 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $22,385,200K ÷ ($8,391,600K – $3,388,400K)
= 4.47
Analyzing the working capital turnover for Wesco International, Inc. over the past eight quarters reveals fluctuations in efficiency in utilizing working capital to generate revenue. The trend shows a gradual decrease from 5.28 in Q1 2022 to 4.47 in Q4 2023, indicating a potential slowdown in the company's ability to convert working capital into sales. Although the ratios remained relatively stable around the 4.5-5 range for the majority of the quarters, a downward trend is evident. This suggests a need for the company to reassess its working capital management strategies to improve cash flow efficiency and optimize operational performance.
Peer comparison
Dec 31, 2023