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.