Blackline Inc (BL)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	653,336	589,996	522,938	425,706	351,737
Total current assets	US$ in thousands	1,092,400	1,407,320	1,249,570	1,347,690	674,115
Total current liabilities	US$ in thousands	422,243	642,565	367,821	322,577	242,330
Working capital turnover		0.97	0.77	0.59	0.42	0.81

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $653,336K ÷ ($1,092,400K – $422,243K)
= 0.97

Blackline Inc's working capital turnover ratio has experienced fluctuations over the past five years. In December 31, 2020, the ratio stood at 0.81, indicating that the company generated $0.81 in revenue for every dollar of working capital invested. However, by December 31, 2021, the ratio decreased to 0.42, showing a significant decline in efficiency in utilizing its working capital to generate revenue.

In the subsequent years, Blackline Inc managed to improve its working capital turnover ratio. By December 31, 2022, the ratio increased to 0.59, signaling a better utilization of working capital resources. This positive trend continued in December 31, 2023, with a ratio of 0.77, indicating further improvements in efficiency.

The most recent data point, as of December 31, 2024, shows a significant improvement in Blackline Inc's working capital turnover ratio, reaching 0.97. This suggests that the company has become more effective in utilizing its working capital to generate revenue, indicating potentially improved operational efficiency and better management of working capital resources.

Overall, the fluctuation in Blackline Inc's working capital turnover ratio over the years highlights the importance of monitoring and optimizing working capital management to enhance operational efficiency and financial performance.