Apogee Enterprises Inc (APOG)
Working capital turnover
| Mar 2, 2024 | Feb 25, 2023 | Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,416,940 | 1,440,700 | 1,313,980 | 1,230,770 | 1,387,440 |
| Total current assets | US$ in thousands | 358,639 | 383,101 | 337,892 | 350,674 | 381,910 |
| Total current liabilities | US$ in thousands | 244,705 | 242,549 | 232,946 | 217,552 | 276,857 |
| Working capital turnover | 12.44 | 10.25 | 12.52 | 9.25 | 13.21 |
March 2, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,416,940K ÷ ($358,639K – $244,705K)
= 12.44
To analyze Apogee Enterprises Inc's working capital turnover, we can see a fluctuation in the ratio over the past five years. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates that the company is able to generate more sales with a lower investment in working capital.
In the results provided, we observe that the working capital turnover ratio has varied within a range from 9.25 to 13.21 over the past five years. This indicates that, on average, for each year during this period, Apogee Enterprises Inc was able to turn over its working capital between approximately 9 to 13 times to generate sales revenue.
The highest turnover ratio was observed in the fiscal year ending February 29, 2020, at 13.21, suggesting that the company was able to more efficiently utilize its working capital to generate revenue that year. Conversely, the lowest ratio was seen in the fiscal year ending February 27, 2021, at 9.25, indicating a less efficient use of working capital compared to the other years in the dataset.
Overall, the trend in the working capital turnover ratio for Apogee Enterprises Inc shows some variability, with fluctuations in efficiency in utilizing its working capital to generate sales revenue over the past five years.