Blackline Inc (BL)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	583,654	567,879	551,446	535,362	517,277	494,103	454,609	414,043	371,779	352,163	343,114	334,191	333,571	318,119	305,795	297,928	285,842	267,900	254,715	240,505
Total current assets	US$ in thousands	1,407,320	1,319,140	1,283,750	1,243,200	1,249,570	1,177,080	1,171,520	1,171,480	1,347,690	1,301,430	1,287,360	1,267,490	674,115	753,997	739,913	720,596	723,406	689,260	235,782	219,339
Total current liabilities	US$ in thousands	642,565	605,857	355,036	363,548	367,821	314,581	328,256	339,494	322,577	256,249	259,769	248,238	242,330	203,630	202,995	199,587	206,997	178,205	174,748	162,631
Working capital turnover		0.76	0.80	0.59	0.61	0.59	0.57	0.54	0.50	0.36	0.34	0.33	0.33	0.77	0.58	0.57	0.57	0.55	0.52	4.17	4.24

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $583,654K ÷ ($1,407,320K – $642,565K)
= 0.76

The working capital turnover of Blackline Inc has fluctuated over the various periods, indicating efficiency in managing its working capital. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.

From the data provided, we observe that the working capital turnover ratio ranged from 0.33 to 0.80 over the past five years. A higher turnover ratio suggests that the company is effectively using its working capital to support sales activities.

In analyzing the trend, we notice an upward trend in the recent quarters, with the ratio improving from 0.36 in Q4 2021 to 0.80 in Q3 2023. This could indicate improvements in managing inventory, accounts receivable, and accounts payable, resulting in increased sales generated from the same level of working capital.

On the other hand, there are periods where the working capital turnover ratio dropped significantly, such as in Q1 2020 and Q2 2020, where the ratios were as high as 4.17 and 4.24, respectively. This could be a result of lower sales relative to the working capital invested during those periods.

Overall, a consistent and increasing trend in the working capital turnover ratio indicates that Blackline Inc is becoming more efficient in using its working capital to drive sales, ultimately improving its financial performance.