Werner Enterprises Inc (WERN)

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 3,283,499 3,323,045 3,332,907 3,358,087 3,289,978 3,193,708 3,068,993 2,882,531 2,734,372 2,589,453 2,476,776 2,395,921 2,372,178 2,373,663 2,401,713 2,460,287 2,463,701 2,488,279 2,499,750 2,491,347
Total current assets US$ in thousands 634,628 644,808 609,335 709,776 762,615 730,506 772,405 678,354 631,213 569,791 666,511 532,909 456,916 464,121 431,587 459,643 466,334 436,325 453,301 455,454
Total current liabilities US$ in thousands 330,585 329,664 315,129 303,329 309,520 302,634 470,980 290,271 268,683 261,228 259,187 307,761 274,014 256,208 249,623 304,671 308,840 331,921 228,570 322,599
Working capital turnover 10.80 10.54 11.33 8.26 7.26 7.46 10.18 7.43 7.54 8.39 6.08 10.64 12.97 11.42 13.20 15.88 15.64 23.83 11.12 18.75

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,283,499K ÷ ($634,628K – $330,585K)
= 10.80

The working capital turnover of Werner Enterprises, Inc. has exhibited fluctuations over the last eight quarters. The company's working capital turnover ranged from a low of 7.26 in Q4 2022 to a high of 11.33 in Q2 2023, showing variability in how efficiently the company is utilizing its working capital to generate sales revenue.

Generally, a higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to support sales growth. In this case, the company's working capital turnover peaked in Q2 2023 at 11.33, reflecting a significant increase in efficiency in converting working capital into sales during that period.

However, the working capital turnover ratio decreased in the subsequent quarter, Q3 2023, from the peak value, implying a potential slowdown in the company's efficiency in utilizing its working capital in supporting sales. It rebounded slightly in Q4 2023 to 10.80, still significantly higher than the previous quarters.

Overall, Werner Enterprises, Inc. should continue to closely monitor its working capital turnover to ensure optimal utilization of working capital resources to drive sales revenue efficiently and sustainably in the long term.