Agilysys Inc (AGYS)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	238,118	198,854	163,406	137,285	160,748
Total current assets	US$ in thousands	188,937	154,658	136,173	133,250	93,408
Total current liabilities	US$ in thousands	89,371	78,515	71,466	61,155	69,423
Working capital turnover		2.39	2.61	2.53	1.90	6.70

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $238,118K ÷ ($188,937K – $89,371K)
= 2.39

The working capital turnover of Agilysys Inc has shown some fluctuations over the past five years. The ratio decreased from 6.70 in 2020 to 1.90 in 2021, indicating a significant decline in the efficiency of utilizing working capital to generate revenue. However, there was a subsequent improvement in 2022 and 2023, with the ratio reaching 2.53 and 2.61, respectively. This suggests that the company was able to better utilize its working capital during these years.

In 2024, the working capital turnover ratio decreased slightly to 2.39. While it is lower than the previous year, it still indicates that Agilysys Inc is effectively using its working capital to generate revenue. Overall, the trend in the working capital turnover ratio suggests that the company has been somewhat inconsistent in efficiently managing its working capital, with notable improvements seen in recent years compared to 2021.