Aecom Technology Corporation (ACM)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,105,500 | 14,378,500 | 13,148,200 | 13,340,900 | 13,240,000 |
| Total current assets | US$ in thousands | 7,176,060 | 6,169,510 | 5,822,810 | 6,173,540 | 7,530,370 |
| Total current liabilities | US$ in thousands | 6,374,080 | 5,850,280 | 5,404,170 | 5,521,720 | 6,090,450 |
| Working capital turnover | 20.08 | 45.04 | 31.41 | 20.47 | 9.19 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $16,105,500K ÷ ($7,176,060K – $6,374,080K)
= 20.08
The working capital turnover ratio measures how effectively Aecom Technology Corporation is utilizing its working capital to generate revenue. A higher ratio indicates that the company is efficiently using its current assets to support its operations.
Looking at the trend over the past five years, Aecom's working capital turnover has shown strong improvement, increasing from 9.19 in 2020 to 20.08 in 2024. This indicates that the company has become more efficient in managing its working capital to generate sales.
The significant increase in the ratio from 2020 to 2023, reaching a peak of 45.04, suggests that Aecom made substantial improvements in its working capital management during that period. This could be due to better inventory management, faster collection of accounts receivable, or more efficient payment of accounts payable.
Although there was a slight decrease in the ratio in 2024 compared to the peak in 2023, the current value of 20.08 still indicates a high level of efficiency in working capital utilization for revenue generation.
Overall, Aecom Technology Corporation's working capital turnover ratio has shown a positive trend, indicating improved efficiency in managing its working capital over the analyzed period.
Peer comparison
Sep 30, 2024