Werner Enterprises Inc (WERN)

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 3,030,258 3,097,524 3,169,567 3,219,865 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
Total current assets US$ in thousands 541,773 546,966 577,666 597,316 634,628 644,808 609,335 709,776 762,615 730,506 772,405 678,354 617,424 569,791 666,511 532,909 456,916 464,121 431,587 459,643
Total current liabilities US$ in thousands 355,749 357,709 342,459 314,052 330,585 329,664 315,129 303,329 309,520 302,634 470,980 290,271 269,647 261,228 254,187 307,761 274,014 256,208 249,623 304,671
Working capital turnover 16.29 16.37 13.48 11.37 10.80 10.54 11.33 8.26 7.26 7.46 10.18 7.43 7.86 8.39 6.01 10.64 12.97 11.42 13.20 15.88

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,030,258K ÷ ($541,773K – $355,749K)
= 16.29

Working capital turnover measures how efficiently a company is using its working capital to generate revenue. A higher turnover ratio indicates better efficiency in managing working capital.

Looking at the data provided for Werner Enterprises Inc, we observe fluctuations in the working capital turnover ratio over the quarters analyzed. The ratio ranged from a high of 16.37 in September 2024 to a low of 6.01 in June 2021.

Initially, the working capital turnover was relatively high, indicating efficient utilization of working capital to generate revenue. However, there was a significant drop in the ratio in mid-2021, suggesting a potential slowdown in the company's working capital management efficiency.

Subsequently, there were fluctuations in the ratio, with periods of improvement and decline. The ratio generally recovered and showed an upward trend towards the end of the data period, reaching 16.29 in December 2024.

Overall, an analysis of Werner Enterprises Inc's working capital turnover indicates varying levels of efficiency in utilizing working capital to support sales activity over the quarters, with some periods showing stronger performance than others. It would be crucial for the company to monitor and manage its working capital effectively to ensure optimal performance and efficiency in generating revenue.