Acuity Brands Inc (AYI)
Working capital turnover
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,822,700 | 3,789,100 | 3,813,600 | 3,850,400 | 3,913,100 | 4,022,500 | 4,082,500 | 4,049,200 | 3,979,100 | 3,887,700 | 3,727,000 | 3,594,000 | 3,461,000 | 3,363,200 | 3,240,000 | 3,287,700 | 3,326,400 | 3,379,200 | 3,547,600 | 3,575,500 |
| Total current assets | US$ in thousands | 1,871,500 | 1,674,000 | 1,546,800 | 1,474,100 | 1,395,200 | 1,408,400 | 1,393,500 | 1,455,800 | 1,466,000 | 1,608,600 | 1,672,000 | 1,599,900 | 1,544,300 | 1,538,500 | 1,344,100 | 1,347,700 | 1,439,700 | 1,380,300 | 1,307,800 | 1,206,400 |
| Total current liabilities | US$ in thousands | 687,900 | 605,300 | 597,900 | 600,600 | 595,400 | 624,200 | 596,300 | 697,600 | 733,600 | 866,900 | 743,700 | 695,200 | 692,200 | 671,400 | 576,300 | 583,400 | 617,600 | 575,900 | 572,200 | 572,600 |
| Working capital turnover | 3.23 | 3.55 | 4.02 | 4.41 | 4.89 | 5.13 | 5.12 | 5.34 | 5.43 | 5.24 | 4.01 | 3.97 | 4.06 | 3.88 | 4.22 | 4.30 | 4.05 | 4.20 | 4.82 | 5.64 |
August 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,822,700K ÷ ($1,871,500K – $687,900K)
= 3.23
Acuity Brands Inc's working capital turnover has shown fluctuations over the past several periods. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its sales activities.
From Nov 30, 2019, to Aug 31, 2024, Acuity Brands Inc's working capital turnover has ranged from 3.23 to 5.64. The trend generally shows an increasing pattern from 2019 to early 2022, peaking at 5.64 in May 31, 2022. This suggests that the company was efficiently using its working capital to generate sales during this period.
However, from early 2022 to mid-2023, there was a slight decline in the working capital turnover ratio, indicating a potential decrease in the efficiency of working capital management compared to the previous periods. It is worth noting that there was a significant drop in the ratio from May 31, 2022, to Feb 28, 2023, which was then followed by a gradual recovery in the subsequent periods.
Overall, Acuity Brands Inc's working capital turnover ratio has shown some variability, but it generally indicates that the company has been effectively utilizing its working capital to support its sales operations. Continued monitoring of this ratio will be essential to ensure efficient working capital management in the future.
Peer comparison
Aug 31, 2024