Agilysys Inc (AGYS)

Working capital turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	238,116	228,927	218,281	207,406	198,852	192,499	182,035	172,185	163,404	152,529	149,739	146,206	137,288	140,489	145,785	152,147	160,729	157,688	151,737	145,217
Total current assets	US$ in thousands	188,937	183,694	153,411	149,438	154,658	159,083	136,427	132,140	136,173	149,614	134,223	134,827	133,250	131,952	115,544	116,942	93,408	84,313	72,393	73,449
Total current liabilities	US$ in thousands	89,371	91,207	72,707	73,893	78,515	81,132	62,054	62,777	71,466	64,151	52,199	57,019	61,155	58,425	45,777	56,054	69,423	62,569	52,585	53,756
Working capital turnover		2.39	2.48	2.70	2.75	2.61	2.47	2.45	2.48	2.53	1.78	1.83	1.88	1.90	1.91	2.09	2.50	6.70	7.25	7.66	7.37

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $238,116K ÷ ($188,937K – $89,371K)
= 2.39

Agilysys Inc's working capital turnover has fluctuated over the past few quarters, ranging from a low of 1.78 to a high of 7.66. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital to support sales.

In the most recent quarter, the working capital turnover was 2.39, showing that for every dollar of working capital, Agilysys Inc generated $2.39 in revenue. This suggests a moderate level of efficiency in working capital management.

It is noteworthy that the working capital turnover ratio has experienced some volatility over the periods analyzed. The upward trend from 1.78 in December 2021 to 7.66 in December 2019 indicates an improvement in efficiency in utilizing working capital to generate revenue. However, the ratio experienced a decline in the most recent quarters compared to the previous periods.

Overall, Agilysys Inc's working capital turnover ratio reflects fluctuations but generally indicates a reasonable level of efficiency in managing working capital to support revenue generation. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management performance.