Woodward Inc (WWD)
Working capital turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,311,919 | 3,214,747 | 3,156,401 | 3,033,346 | 2,865,507 | 2,731,573 | 2,548,442 | 2,427,467 | 2,353,549 | 2,281,598 | 2,224,172 | 2,218,179 | 2,214,167 | 2,184,932 | 2,152,575 | 2,292,043 | 2,474,487 | 2,679,760 | 2,904,004 | 2,938,143 |
| Total current assets | US$ in thousands | 1,743,610 | 1,788,360 | 1,811,970 | 1,546,160 | 1,469,450 | 1,490,480 | 1,470,690 | 1,359,500 | 1,311,970 | 1,253,720 | 1,331,390 | 1,446,730 | 1,464,720 | 1,443,530 | 1,368,160 | 1,246,550 | 1,210,860 | 1,236,950 | 1,339,810 | 1,329,200 |
| Total current liabilities | US$ in thousands | 923,510 | 913,092 | 691,855 | 582,814 | 617,196 | 586,659 | 666,944 | 633,161 | 539,113 | 424,474 | 369,046 | 329,508 | 366,257 | 340,577 | 341,408 | 328,110 | 392,332 | 535,628 | 594,834 | 792,045 |
| Working capital turnover | 4.04 | 3.67 | 2.82 | 3.15 | 3.36 | 3.02 | 3.17 | 3.34 | 3.05 | 2.75 | 2.31 | 1.99 | 2.02 | 1.98 | 2.10 | 2.50 | 3.02 | 3.82 | 3.90 | 5.47 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,311,919K ÷ ($1,743,610K – $923,510K)
= 4.04
Woodward Inc's working capital turnover has exhibited fluctuations over the past several quarters. 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 managing working capital.
From December 2019 to March 2020, there was a significant decrease in the working capital turnover ratio, possibly indicating inefficiencies in utilizing working capital during that period. However, from June 2020 to September 2020, there was a notable improvement in the ratio, reaching a peak of 3.82.
Subsequently, the ratio experienced further fluctuations, with a general downward trend for the following quarters. This suggests potential challenges in effectively managing working capital to generate sales revenue.
Overall, Woodward Inc's working capital turnover ratio has varied over the analyzed periods, with the company showing some efficiency in utilizing its working capital to generate sales, although there have been fluctuations that may warrant closer attention to working capital management practices.