YETI Holdings Inc (YETI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,658,710 | 1,595,220 | 1,410,990 | 1,091,720 | 913,734 |
| Total current assets | US$ in thousands | 914,405 | 718,920 | 770,167 | 476,497 | 360,547 |
| Total current liabilities | US$ in thousands | 398,353 | 409,040 | 403,713 | 287,759 | 170,312 |
| Working capital turnover | 3.21 | 5.15 | 3.85 | 5.78 | 4.80 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,658,710K ÷ ($914,405K – $398,353K)
= 3.21
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover indicates that the company is able to generate more sales with less investment in working capital.
YETI Holdings Inc's working capital turnover has fluctuated over the past five years, ranging from 3.21 to 5.78. In 2023, the working capital turnover decreased to 3.21 from 5.15 in 2022. This decline may indicate that the company's efficiency in utilizing its working capital to generate sales revenue decreased during the year.
Comparing the current ratio to previous years, we see that the working capital turnover was highest in 2020 at 5.78, which implies that the company was able to generate more sales revenue with less investment in working capital that year. In contrast, the lowest working capital turnover of 3.21 in 2023 indicates a decreased efficiency in working capital utilization compared to prior years.
Overall, YETI Holdings Inc's working capital turnover has varied over the past five years, suggesting fluctuations in the company's ability to efficiently convert working capital into sales revenue. Further analysis of the company's operating and financial performance may help in understanding the factors contributing to these fluctuations.
Peer comparison
Dec 31, 2023