Cactus Inc (WHD)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,090,880 | 692,436 | 438,080 | 349,742 | 629,748 |
| Total current assets | US$ in thousands | 556,178 | 654,642 | 518,485 | 425,142 | 414,883 |
| Total current liabilities | US$ in thousands | 175,660 | 116,649 | 92,574 | 48,915 | 91,126 |
| Working capital turnover | 2.87 | 1.29 | 1.03 | 0.93 | 1.95 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,090,880K ÷ ($556,178K – $175,660K)
= 2.87
The working capital turnover ratio for Cactus Inc has exhibited fluctuations over the five-year period analyzed. The ratio increased significantly from 0.93 in 2020 to 2.87 in 2023, indicating a notable improvement in the efficiency of utilizing working capital to generate revenue. This suggests that the company has been able to generate more sales with less working capital in the most recent year.
However, it is important to note that there were fluctuations in the ratio throughout the period, with a notable decrease from 2019 to 2020 followed by a sharp increase in 2021 and subsequent fluctuations in the following years. Overall, the trend indicates that Cactus Inc has been able to manage its working capital more efficiently in recent years compared to the earlier ones, which could be a positive sign of improved operational performance and financial management.
Peer comparison
Dec 31, 2023