Wabash National Corporation (WNC)
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 | 1,946,740 | 2,126,026 | 2,294,814 | 2,430,824 | 2,536,500 | 2,597,849 | 2,620,171 | 2,576,320 | 2,502,129 | 2,323,957 | 2,151,373 | 1,958,026 | 1,803,268 | 1,728,069 | 1,597,087 | 1,486,818 | 1,481,889 | 1,656,812 | 1,886,136 | 2,173,036 |
| Total current assets | US$ in thousands | 594,488 | 639,486 | 643,965 | 687,494 | 681,353 | 721,043 | 728,428 | 682,920 | 592,619 | 674,516 | 707,427 | 695,937 | 529,705 | 582,164 | 587,984 | 620,644 | 545,764 | 566,508 | 502,849 | 577,057 |
| Total current liabilities | US$ in thousands | 308,409 | 339,283 | 323,356 | 368,589 | 352,209 | 393,217 | 433,410 | 424,401 | 347,468 | 397,364 | 432,688 | 372,660 | 289,325 | 287,977 | 282,549 | 298,578 | 235,753 | 279,791 | 232,114 | 269,535 |
| Working capital turnover | 6.80 | 7.08 | 7.16 | 7.62 | 7.71 | 7.92 | 8.88 | 9.97 | 10.21 | 8.39 | 7.83 | 6.06 | 7.50 | 5.87 | 5.23 | 4.62 | 4.78 | 5.78 | 6.97 | 7.07 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,946,740K ÷ ($594,488K – $308,409K)
= 6.80
The working capital turnover ratio for Wabash National Corporation has fluctuated over the past few years, indicating the effectiveness of the company in managing its working capital. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
From the provided data, we can see that the working capital turnover ratio peaked at 10.21 on December 31, 2022, which suggests that the company was able to generate $10.21 in sales for every dollar of working capital invested. This reflects efficient management of working capital during that period.
On the other hand, the ratio decreased to 4.62 on March 31, 2021, which indicates a decline in the efficiency of converting working capital into sales. However, this ratio gradually improved over the subsequent quarters, reaching 7.83 on June 30, 2022, and peaking again at 10.21 on December 31, 2022.
Overall, the working capital turnover ratios show fluctuations but generally demonstrate an improving trend from 2021 to 2023, suggesting that Wabash National Corporation has been enhancing its efficiency in utilizing working capital to drive sales. However, investors and stakeholders should continue to monitor this ratio to ensure sustainable and efficient working capital management in the future.