Dentsply Sirona Inc (XRAY)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,793,000 | 3,965,000 | 3,922,000 | 4,251,000 | 3,342,000 |
| Total current assets | US$ in thousands | 1,746,000 | 1,973,000 | 1,893,000 | 1,837,000 | 1,791,000 |
| Total current liabilities | US$ in thousands | 1,589,000 | 1,425,000 | 1,170,000 | 1,186,000 | 1,317,000 |
| Working capital turnover | 24.16 | 7.24 | 5.42 | 6.53 | 7.05 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,793,000K ÷ ($1,746,000K – $1,589,000K)
= 24.16
The working capital turnover of Dentsply Sirona Inc has shown fluctuations over the years. In December 2020, the working capital turnover was 7.05, indicating that the company generated $7.05 in revenue for every dollar of working capital invested. This ratio decreased to 6.53 by December 2021, suggesting a slight decline in efficiency in utilizing working capital.
However, in December 2022, there was a more significant drop in the working capital turnover to 5.42, indicating a potential inefficiency in generating revenue from the company's working capital. The ratio then rebounded in December 2023 to 7.24, surpassing the 2020 levels and suggesting improved efficiency in utilizing working capital to generate revenue.
Notably, in December 2024, there was a substantial increase in the working capital turnover to 24.16, signaling a significant improvement in efficiency in utilizing working capital to generate revenue. This exceptionally high ratio could be indicative of changes in the company's operations or financial management strategies that drastically boosted revenue generation relative to working capital.
Overall, the trend in Dentsply Sirona Inc's working capital turnover indicates some variability in the company's efficiency in generating revenue from its working capital, with notable improvements in 2023 and a remarkable surge in 2024.
Peer comparison
Dec 31, 2024