Wabash National Corporation (WNC)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,536,500 | 2,502,130 | 1,803,270 | 1,481,890 | 2,319,140 |
| Total current assets | US$ in thousands | 681,353 | 592,619 | 529,705 | 545,764 | 541,389 |
| Total current liabilities | US$ in thousands | 352,209 | 347,468 | 289,325 | 235,753 | 259,378 |
| Working capital turnover | 7.71 | 10.21 | 7.50 | 4.78 | 8.22 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,536,500K ÷ ($681,353K – $352,209K)
= 7.71
The working capital turnover of Wabash National Corp. has exhibited fluctuations over the past five years. In 2023, the company's working capital turnover ratio decreased to 7.71 from 10.21 in 2022, indicating that the company generated $7.71 in revenue for every dollar of working capital invested. This decline may suggest a less efficient management of working capital in the most recent year.
Comparing this to the previous four years, where the ratios were 7.50 in 2021, 4.78 in 2020, and 8.22 in 2019, there appears to be some variability in the efficiency of working capital management. The considerable increase in 2022 to 10.21 compared to the years before and after may indicate a one-time improvement or specific operational changes affecting working capital efficiency in that year.
Overall, a working capital turnover ratio above 1 indicates efficient utilization of working capital. Despite the fluctuations observed in the past five years, Wabash National Corp. has generally maintained ratios well above 1, implying effective management of its working capital to generate sales revenue. It is important for the company to analyze the underlying reasons for these fluctuations to ensure sustained operational efficiency and financial performance.