Box Inc (BOX)

Working capital turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Revenue (ttm)	US$ in thousands	1,040,660	1,034,032	1,022,661	1,007,585	994,399	970,516	944,382	913,066	877,507	844,717	816,408	793,107	773,486	759,422	740,713	721,926	700,057	682,054	660,627	636,568
Total current assets	US$ in thousands	842,180	684,329	692,883	731,238	806,763	656,527	638,885	715,420	916,564	927,619	1,028,860	789,597	879,286	449,288	453,584	427,227	457,726	355,091	364,241	367,573
Total current liabilities	US$ in thousands	679,280	570,627	593,452	620,699	715,827	597,396	621,600	612,711	718,975	587,788	577,929	552,705	612,839	496,510	514,638	511,200	577,434	467,506	458,023	444,730
Working capital turnover		6.39	9.09	10.29	9.12	10.94	16.41	54.64	8.89	4.44	2.49	1.81	3.35	2.90	—	—	—	—	—	—	—

January 31, 2024 calculation

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

The working capital turnover ratio for Box Inc has fluctuated over the past several quarters. The ratio measures how effectively the company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in using current assets to support sales.

In the most recent quarter, Jan 31, 2024, the working capital turnover was 6.39, showing a decrease from the previous quarter, Oct 31, 2023, where it reached 9.09. This decrease suggests that Box Inc may be experiencing challenges in efficiently managing its working capital to support sales.

Looking back over the past year, the trend in the working capital turnover ratios shows significant variation. The ratio peaked at 54.64 in Jul 31, 2022, indicating a period of exceptional efficiency in converting working capital into sales. However, the ratio has since experienced fluctuations, with values dropping to as low as 1.81 in Jul 31, 2021.

Overall, the working capital turnover ratios for Box Inc demonstrate fluctuating efficiency in utilizing its working capital over the analyzed period. It is important for the company to assess the reasons behind these fluctuations and implement strategies to maintain a healthy balance between working capital management and revenue generation.