AeroVironment Inc (AVAV)
Working capital turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 715,090 | 538,194 | 480,176 | 437,161 | 428,516 |
| Total current assets | US$ in thousands | 515,581 | 477,002 | 368,909 | 401,638 | 503,927 |
| Total current liabilities | US$ in thousands | 144,879 | 121,334 | 101,391 | 96,185 | 66,953 |
| Working capital turnover | 1.93 | 1.51 | 1.79 | 1.43 | 0.98 |
April 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $715,090K ÷ ($515,581K – $144,879K)
= 1.93
AeroVironment Inc's working capital turnover has shown fluctuations over the past five years, ranging from 0.98 to 1.93. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio typically indicates that the company is effectively managing its working capital to support its sales activities.
In 2024, the working capital turnover ratio improved significantly to 1.93 from 1.51 in 2023. This suggests that AeroVironment Inc was able to generate more sales revenue for each dollar of working capital invested in the business, indicating improved operational efficiency.
In 2022, the ratio was 1.79, which was a slight decrease from the previous year but still reflected a relatively efficient use of working capital. In 2021, the ratio dropped to 1.43, indicating a slight decrease in efficiency compared to the prior year.
The lowest working capital turnover ratio was observed in 2020 at 0.98, which may indicate a potential inefficiency in managing working capital to support sales activities during that period.
Overall, AeroVironment Inc's working capital turnover has shown variability over the years, with the latest data indicating a significant improvement in efficiency. It would be important to further investigate the company's working capital management practices to understand the factors contributing to these fluctuations in the ratio.
Peer comparison
Apr 30, 2024