Cactus Inc (WHD)
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 | 1,129,814 | 1,132,559 | 1,127,248 | 1,142,678 | 1,096,960 | 1,009,868 | 906,479 | 770,875 | 688,369 | 630,511 | 561,393 | 500,071 | 438,589 | 376,763 | 321,189 | 278,844 | 348,566 | 420,714 | 521,733 | 623,678 |
| Total current assets | US$ in thousands | 774,688 | 730,201 | 669,021 | 616,957 | 556,178 | 492,948 | 499,069 | 527,455 | 654,642 | 626,950 | 594,527 | 546,365 | 518,485 | 491,801 | 473,779 | 439,407 | 425,142 | 411,894 | 416,666 | 435,274 |
| Total current liabilities | US$ in thousands | 178,824 | 191,301 | 178,623 | 190,670 | 175,660 | 177,367 | 180,731 | 186,566 | 116,649 | 132,187 | 113,638 | 102,457 | 92,574 | 87,951 | 73,560 | 55,056 | 48,915 | 47,997 | 58,778 | 81,414 |
| Working capital turnover | 1.90 | 2.10 | 2.30 | 2.68 | 2.88 | 3.20 | 2.85 | 2.26 | 1.28 | 1.27 | 1.17 | 1.13 | 1.03 | 0.93 | 0.80 | 0.73 | 0.93 | 1.16 | 1.46 | 1.76 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,129,814K ÷ ($774,688K – $178,824K)
= 1.90
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.
Based on the data provided for Cactus Inc:
- The working capital turnover ratio fluctuated over the years, starting at 1.76 on March 31, 2020, and reaching a peak of 3.20 on September 30, 2023.
- The ratio experienced a significant increase from March 31, 2023, indicating a notable improvement in working capital efficiency.
- However, the ratio decreased in the subsequent periods, stabilizing around the range of 2.10 to 1.90 from September 30, 2024, onwards.
Overall, Cactus Inc generally maintained a healthy level of working capital turnover throughout the period, with fluctuations reflecting changes in the company's operational efficiency and sales dynamics. It is important for the company to monitor and manage its working capital effectively to support sustainable business growth and profitability.
Peer comparison
Dec 31, 2024