Woodward Inc (WWD)

Working capital turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	2,866,041	2,848,863	2,687,895
Total current assets	US$ in thousands	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	1,271,230	1,298,110	1,244,090
Total current liabilities	US$ in thousands	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	707,436	642,672	642,612
Working capital turnover		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	5.08	4.35	4.47

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,033,346K ÷ ($1,546,160K – $582,814K)
= 3.15

Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales. A higher turnover ratio indicates that the company is effectively managing its working capital.

Looking at Woodward Inc's working capital turnover over the past eight quarters, we can see some fluctuations. In Q1 2024, the working capital turnover was 3.20, which was lower compared to Q4 2023 at 3.42. Despite the decrease, the ratio remains relatively high, suggesting that Woodward Inc is efficiently utilizing its working capital to support sales.

The trend over the quarters shows some variability, with the ratio ranging from 2.34 in Q2 2022 to 3.42 in Q4 2023. Generally, the company's working capital turnover has been above 3, reflecting strong efficiency in converting working capital into sales.

It is important to note that a high turnover ratio may also indicate aggressive sales strategies or tight working capital management, which could pose risks if not sustainable. Overall, Woodward Inc's consistent performance in maintaining a relatively high working capital turnover suggests good working capital management practices.