Dentsply Sirona Inc (XRAY)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,887,000 | 3,908,000 | 20,000 | 3,305,000 | 4,021,100 |
| Total current assets | US$ in thousands | 1,973,000 | 1,893,000 | 1,852,000 | 1,798,000 | 2,000,000 |
| Total current liabilities | US$ in thousands | 1,425,000 | 1,170,000 | 1,261,000 | 1,372,000 | 995,000 |
| Working capital turnover | 7.09 | 5.41 | 0.03 | 7.76 | 4.00 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,887,000K ÷ ($1,973,000K – $1,425,000K)
= 7.09
DENTSPLY Sirona Inc's working capital turnover has shown an upward trend over the past five years, increasing from 4.01 in 2019 to 7.24 in 2023. This indicates that the company is more efficient in utilizing its working capital to generate sales. A higher working capital turnover ratio suggests that the company is able to turn its working capital into revenue multiple times during the year.
The consistent improvement in the working capital turnover ratio reflects the company's ability to manage its working capital efficiently, either by reducing excess inventory, accelerating collection of receivables, or optimizing its payables. This could lead to improved liquidity and profitability for the company as it indicates that DENTSPLY Sirona is utilizing its resources effectively to drive revenue growth.
Overall, the increasing trend in DENTSPLY Sirona's working capital turnover ratio signifies a positive development in the company's operational efficiency and financial performance over the years.
Peer comparison
Dec 31, 2023