Blackline Inc (BL)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	583,245	518,558	355,637	328,649	280,261
Total current assets	US$ in thousands	1,407,320	1,249,570	1,347,690	674,115	723,406
Total current liabilities	US$ in thousands	642,565	367,821	322,577	242,330	206,997
Working capital turnover		0.76	0.59	0.35	0.76	0.54

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $583,245K ÷ ($1,407,320K – $642,565K)
= 0.76

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to generate revenue.

In the case of Blackline Inc, the working capital turnover has varied over the past five years. In 2023, the ratio stood at 0.76, which indicates that for each dollar of working capital, the company generated $0.76 in sales revenue. This represents an improvement from the previous year, where the ratio was 0.59.

Looking at the trend over the five-year period, Blackline Inc experienced fluctuations in its working capital turnover ratio. In 2021, the ratio was at its lowest point of 0.35, suggesting that the company was less efficient in converting its working capital into sales revenue that year. However, the ratio improved in the following years, reaching 0.76 in 2020 and 2023.

Overall, while there have been fluctuations in Blackline Inc's working capital turnover ratio, the recent improvement indicates that the company has been more efficient in utilizing its working capital to generate sales revenue. Monitoring this ratio over time can provide insights into the company's operational efficiency and financial health.