Cal-Maine Foods Inc (CALM)
Working capital turnover
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,325,870 | 3,145,760 | 1,781,860 | 1,345,790 | 1,351,610 |
| Total current assets | US$ in thousands | 1,241,840 | 1,124,920 | 661,519 | 519,931 | 522,251 |
| Total current liabilities | US$ in thousands | 227,743 | 182,731 | 184,674 | 90,097 | 93,183 |
| Working capital turnover | 2.29 | 3.34 | 3.74 | 3.13 | 3.15 |
June 1, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,325,870K ÷ ($1,241,840K – $227,743K)
= 2.29
Cal-Maine Foods Inc's working capital turnover has exhibited some fluctuations over the past five years. The working capital turnover ratio decreased from 3.15 in May 2020 to 2.29 in June 2024, indicating a decline in the company's efficiency in utilizing its working capital to generate sales.
Despite the decrease in working capital turnover, the ratio was still above 2 in June 2024, suggesting that Cal-Maine Foods Inc is able to efficiently convert its working capital into revenue. However, it may be beneficial for the company to closely monitor and manage its working capital to improve efficiency in the future.
Overall, while the working capital turnover ratio has fluctuated, Cal-Maine Foods Inc has demonstrated a consistent ability to generate sales relative to its working capital levels over the past five years.