Cactus Inc (WHD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,129,810 | 1,096,960 | 688,369 | 438,589 | 348,566 |
| Total current assets | US$ in thousands | 774,688 | 556,178 | 654,642 | 518,485 | 425,142 |
| Total current liabilities | US$ in thousands | 178,824 | 175,660 | 116,649 | 92,574 | 48,915 |
| Working capital turnover | 1.90 | 2.88 | 1.28 | 1.03 | 0.93 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,129,810K ÷ ($774,688K – $178,824K)
= 1.90
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its sales activities.
In the case of Cactus Inc, the working capital turnover has shown an increasing trend over the years, from 0.93 in December 31, 2020, to 1.90 in December 31, 2024. This suggests that the company has become more efficient in using its working capital to generate sales.
The improvement in the working capital turnover ratio signals that Cactus Inc has been able to generate a higher level of sales relative to its working capital base, which is a positive indicator of operational efficiency and financial performance. Additionally, the substantial increase in the ratio from 2022 to 2023, reaching 2.88, shows a significant leap in efficiency during that period.
Overall, the trend of increasing working capital turnover for Cactus Inc signifies that the company has been able to optimize its working capital management to drive sales growth effectively.
Peer comparison
Dec 31, 2024