Renew Energy Global Plc Ordinary Shares(Rnw) Financials: Working Capital Turnover Compared To Industry Average, Plus Other Key Ratios

Growth Trend (Last 5 Years)

Growth - working capital turnover

This chart shows the historical trend of working capital turnover for RNW compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Working Capital Turnover

Definition: Working capital turnover shows how efficiently the company uses its short-term resources — like cash, inventory, and receivables — to generate sales. Higher turnover means the company squeezes more sales from its working capital. Lower turnover may indicate inefficient inventory, slow collections, or too much short-term capital tied up unnecessarily.

Interpretation:
• In '2021', RNW's working capital turnover was 1.53, showing how efficiently working capital is deployed. Industry average for Electric Utilities: Central in '2021' stood at -0.99.
• In '2022', RNW's working capital turnover was 1.81, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2022' stood at -0.76. Industry average increased by 0.23 compared to previous year.
• In '2023', RNW's working capital turnover was 5.61, showing how efficiently working capital is deployed. The increase since '2022' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2023' stood at -0.82. Industry average declined by 0.06 from previous year.
• In '2024', RNW's working capital turnover was -3.72, showing how efficiently working capital is deployed. The decline from '2023' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2024' stood at -0.65. Industry average increased by 0.17 compared to previous year.
Overall, RNW's working capital turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Working Capital Turnover = Net Sales / Working Capital

Good Range: Ranges 5-20 depending on business.