Werner Enterprises Inc (WERN)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 3,283,500 3,289,980 2,734,370 2,372,180 2,463,700
Total current assets US$ in thousands 634,628 762,615 631,213 456,916 466,334
Total current liabilities US$ in thousands 330,585 309,520 268,683 274,014 308,840
Working capital turnover 10.80 7.26 7.54 12.97 15.64

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,283,500K ÷ ($634,628K – $330,585K)
= 10.80

Werner Enterprises, Inc.'s working capital turnover has displayed fluctuations over the past five years. The company's working capital turnover ratio stood at 10.80 in 2023, indicating that for every dollar of working capital invested, the company generated $10.80 of revenue. This represents an improvement compared to the previous year, where the ratio was 7.26 in 2022.

In 2021, the working capital turnover ratio was 7.54, showing a slight decline from the previous year. However, there was a significant increase in 2020, where the ratio reached 12.97, signaling a more efficient utilization of working capital. The highest working capital turnover ratio was recorded in 2019 at 15.64, showcasing the company's strong ability to generate revenue relative to its working capital.

Overall, fluctuations in Werner Enterprises, Inc.'s working capital turnover ratio suggest varying efficiency levels in utilizing its working capital to generate sales revenue over the past five years. Investors and stakeholders may analyze these trends to assess the company's operational efficiency and financial performance.