Berry Global Group Inc (BERY)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,258,000 | 12,663,000 | 14,493,000 | 13,848,000 | 11,695,000 |
| Total current assets | US$ in thousands | 4,574,000 | 4,533,000 | 5,164,000 | 5,094,000 | 3,817,000 |
| Total current liabilities | US$ in thousands | 3,672,000 | 2,713,000 | 2,844,000 | 3,186,000 | 2,183,000 |
| Working capital turnover | 13.59 | 6.96 | 6.25 | 7.26 | 7.16 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,258,000K ÷ ($4,574,000K – $3,672,000K)
= 13.59
Berry Global Group Inc's working capital turnover has shown a significant improvement over the past five years. The ratio has increased from 7.16 in 2020 to 13.59 in 2024, indicating that the company is generating revenue at a much higher rate relative to its working capital. This suggests that the company is efficiently utilizing its working capital to support its operations and generate sales.
The substantial increase in the working capital turnover ratio may indicate improved inventory management, faster collection of receivables, or more efficient use of payables. This enhanced efficiency in managing the working capital could result in lower financing costs and improved overall profitability for the company.
Overall, the trend of increasing working capital turnover ratio for Berry Global Group Inc demonstrates improved operational efficiency and effective management of its working capital resources over the years.
Peer comparison
Sep 30, 2024