Werner Enterprises Inc (WERN)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 3,030,260 | 3,283,500 | 3,289,980 | 2,734,370 | 2,372,180 |
Total current assets | US$ in thousands | 541,773 | 634,628 | 762,615 | 617,424 | 456,916 |
Total current liabilities | US$ in thousands | 355,749 | 330,585 | 309,520 | 269,647 | 274,014 |
Working capital turnover | 16.29 | 10.80 | 7.26 | 7.86 | 12.97 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,030,260K ÷ ($541,773K – $355,749K)
= 16.29
Werner Enterprises Inc's working capital turnover has shown fluctuations over the years. The working capital turnover ratio measures how efficiently a company is able to utilize its working capital to generate sales revenue.
In December 2020, the working capital turnover was 12.97, indicating that the company generated $12.97 in sales for every dollar of working capital invested. However, this ratio decreased to 7.86 in December 2021, reflecting a decline in the efficiency of working capital utilization.
The trend continued in the following years, with the working capital turnover ratio further declining to 7.26 in December 2022. This suggests that the company may be facing challenges in efficiently managing its working capital to support its sales activities.
There was a notable improvement in December 2023, where the working capital turnover ratio rose to 10.80, indicating a better utilization of working capital relative to sales generation. This improvement was further evident in December 2024, with the ratio significantly increasing to 16.29, reflecting a possible strategic shift towards more effective working capital management.
Overall, the fluctuating trend in Werner Enterprises Inc's working capital turnover highlights the importance of closely monitoring working capital efficiency to drive profitability and sustainable growth in the long term.
Peer comparison
Dec 31, 2024