American Woodmark Corporation (AMWD)
Working capital turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,847,500 | 2,066,200 | 1,857,190 | 1,744,010 | 1,645,320 |
| Total current assets | US$ in thousands | 402,710 | 368,255 | 428,657 | 409,965 | 306,035 |
| Total current liabilities | US$ in thousands | 195,726 | 178,124 | 216,228 | 220,447 | 149,590 |
| Working capital turnover | 8.93 | 10.87 | 8.74 | 9.20 | 10.52 |
April 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,847,500K ÷ ($402,710K – $195,726K)
= 8.93
American Woodmark Corporation's working capital turnover has fluctuated over the past five years. It decreased from 10.52 in 2019 to 8.74 in 2022, then slightly increased to 9.20 in 2021, and further to 10.87 in 2023. However, there was a decrease to 8.93 in 2024.
The working capital turnover measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates that the company is generating more sales with less working capital, which is seen as a positive sign of efficiency.
The decrease in the working capital turnover from 2019 to 2022 suggests that the company may have been less efficient in utilizing its working capital to generate sales during those years. However, the subsequent increase in 2023 and 2021 shows an improvement in efficiency. The decline in 2024 could be a cause for concern and may warrant further investigation into the company's working capital management strategies.
Overall, American Woodmark Corporation's working capital turnover has shown both positive and negative trends over the past five years, highlighting the importance of monitoring this ratio to assess the company's operational efficiency.