AeroVironment Inc (AVAV)
Working capital turnover
| Apr 30, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | Apr 30, 2020 | Jul 27, 2019 | Apr 30, 2019 | Oct 27, 2018 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 715,435 | 704,843 | 652,660 | 583,428 | 539,407 | 496,023 | 461,264 | 482,030 | 485,044 | 478,879 | 471,908 | 427,008 | 451,353 | 402,249 | 397,514 | 383,043 | 325,863 | 356,333 | 323,036 | 315,858 |
| Total current assets | US$ in thousands | 515,581 | 500,691 | 524,045 | 481,688 | 477,002 | 390,881 | 357,532 | 357,268 | 368,909 | 354,522 | 364,077 | 344,918 | 401,638 | 507,599 | 486,792 | 503,927 | 455,329 | 469,588 | 421,912 | 410,203 |
| Total current liabilities | US$ in thousands | 144,879 | 107,531 | 109,304 | 107,189 | 121,334 | 116,397 | 103,854 | 95,876 | 101,391 | 87,483 | 101,429 | 82,660 | 96,185 | 53,478 | 46,323 | 66,953 | 43,108 | 44,866 | 39,491 | 40,752 |
| Working capital turnover | 1.93 | 1.79 | 1.57 | 1.56 | 1.52 | 1.81 | 1.82 | 1.84 | 1.81 | 1.79 | 1.80 | 1.63 | 1.48 | 0.89 | 0.90 | 0.88 | 0.79 | 0.84 | 0.84 | 0.85 |
April 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $715,435K ÷ ($515,581K – $144,879K)
= 1.93
The working capital turnover for AeroVironment Inc has varied over the past few years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio is generally preferred as it suggests that the company is effectively managing its working capital to support its sales activities.
From the data provided:
- The working capital turnover ratio has fluctuated over the periods analyzed, ranging from a low of 0.79 to a high of 1.93.
- There is some variability in the ratio, with the company experiencing periods of higher and lower efficiency in utilizing its working capital.
- The trend seems to show some improvement in recent periods, with the ratio generally increasing from 0.79 in July 2018 to 1.93 in April 2024.
- However, it's important to note that the ratio dropped significantly from April 2021 to August 2020, highlighting a potential period of inefficiency in working capital management.
Overall, the working capital turnover ratio of AeroVironment Inc reflects the company's ability to efficiently use its working capital to support its revenue generation. A consistent focus on maintaining a healthy ratio and managing working capital effectively is crucial for ensuring sustainable operations and growth.
Peer comparison
Apr 30, 2024