Box Inc (BOX)

Working capital turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Revenue	US$ in thousands	1,040,660	994,397	877,506	773,486	702,138
Total current assets	US$ in thousands	842,180	806,763	916,564	879,286	457,726
Total current liabilities	US$ in thousands	679,280	715,827	718,975	612,839	577,434
Working capital turnover		6.39	10.94	4.44	2.90	—

January 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,040,660K ÷ ($842,180K – $679,280K)
= 6.39

The working capital turnover ratio for Box Inc has shown volatility over the years, indicating fluctuations in the efficiency of utilizing working capital to generate sales revenue.

In 2024, the working capital turnover ratio stands at 6.39, representing the company's ability to generate $6.39 in sales for every dollar of working capital invested. This signifies an improvement compared to the previous year, where the ratio was at 10.94, suggesting a more efficient management of working capital in generating revenue.

The significant drop in the ratio in 2022 to 4.44 reflects a decline in the efficiency of working capital utilization in generating sales, which could result from factors such as changes in operating strategies, inventory management, or accounts receivable policies.

Furthermore, the working capital turnover ratio in 2021 was 2.90, indicating a lower level of efficiency in generating sales compared to the preceding years.

It is worth noting that data for 2020 is not available in the provided table, making it challenging to gauge the trend in working capital turnover over a more extended period accurately.

Overall, fluctuations in the working capital turnover ratio for Box Inc suggest the need for continuous monitoring and management of working capital levels to optimize operational efficiency and enhance profitability.