American Woodmark Corporation (AMWD)
Working capital turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,709,580 | 1,847,500 | 2,066,200 | 1,857,190 | 1,744,010 |
| Total current assets | US$ in thousands | 364,453 | 402,710 | 368,255 | 428,657 | 409,965 |
| Total current liabilities | US$ in thousands | 182,942 | 195,726 | 178,124 | 216,228 | 220,447 |
| Working capital turnover | 9.42 | 8.93 | 10.87 | 8.74 | 9.20 |
April 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,709,580K ÷ ($364,453K – $182,942K)
= 9.42
The working capital turnover ratios for American Woodmark Corporation over the specified periods exhibit fluctuations indicative of changes in operational efficiency related to the company's management of working capital relative to sales.
In the fiscal year ending April 30, 2021, the ratio stood at 9.20, suggesting that for every dollar of working capital employed, approximately $9.20 in sales were generated. This ratio experienced a slight decline in the subsequent year, decreasing to 8.74 as of April 30, 2022, which indicates a marginal decrease in the efficiency of utilizing working capital to generate sales.
By April 30, 2023, the ratio increased notably to 10.87, signifying an improvement where the company was more effectively leveraging its working capital to generate sales. This upward trend suggests a period of enhanced operational efficiency or improved management of current assets and liabilities.
However, in the following year ending April 30, 2024, the ratio decreased again to 8.93, reflecting a reduction in the efficiency relative to the previous year, potentially due to increased working capital or a decline in sales productivity. The ratio then experienced a moderate rise to 9.42 by April 30, 2025, approaching the levels seen before the dip, which indicates a partial recovery in operational efficiency.
Overall, the data illustrate a pattern of variability in American Woodmark's working capital utilization efficiency over these years, with a notable peak in 2023. These fluctuations could be attributable to strategic changes, seasonal factors, or shifts in sales volume, and warrant further analysis to understand underlying causes.