Aspen Technology Inc (AZPN)

Working capital turnover

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Revenue (ttm)	US$ in thousands	1,127,482	1,105,220	1,056,992	1,042,667	1,044,178	1,537,315	1,307,437
Total current assets	US$ in thousands	876,066	794,769	709,251	684,323	833,064	876,038	1,045,400	1,094,990	1,047,490	20,362
Total current liabilities	US$ in thousands	337,401	342,279	371,983	302,231	352,427	355,132	605,203	337,533	300,936	170,674
Working capital turnover		2.09	2.44	3.13	2.73	2.17	2.95	2.97

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,127,482K ÷ ($876,066K – $337,401K)
= 2.09

Aspen Technology Inc's working capital turnover ratio has fluctuated over the past quarters, ranging from 2.09 to 3.13.

A working capital turnover ratio indicates how efficiently a company is managing its working capital in generating sales revenue. A higher ratio typically signifies better efficiency in utilizing its current assets to support its sales operations.

In Aspen Technology Inc's case, the trend shows variations in the efficiency of its working capital management. The decrease in the ratio from 3.13 in December 2023 to 2.09 in June 2024 indicates a decline in efficiency during this period. It suggests that the company may have experienced challenges in effectively converting its working capital into sales revenue during this timeframe.

On the other hand, the increase in the ratio to 2.95 in March 2023 followed by 2.97 in December 2022 shows improved efficiency in managing its working capital during these quarters. This suggests that Aspen Technology Inc successfully optimized its current assets to support its sales activities during these periods.

Overall, Aspen Technology Inc's working capital turnover ratio has displayed fluctuations, indicating varying degrees of efficiency in utilizing its working capital to generate sales revenue over the analyzed quarters. Further investigation into the specific drivers behind these fluctuations could provide deeper insights into the company's financial health and operational efficiency.