Cal-Maine Foods Inc (CALM)
Working capital turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,261,882 | 3,799,011 | 3,022,120 | 2,778,385 | 2,695,590 | 2,584,704 | 2,467,149 | 2,222,959 | 1,979,227 | 2,138,004 | 2,303,450 | 2,834,197 | 3,378,493 | 3,491,513 | 3,606,434 | 3,267,285 | 2,922,859 | 2,714,123 | 2,503,481 | 2,322,622 |
| Total current assets | US$ in thousands | 1,968,110 | 1,983,280 | 1,424,600 | 1,343,480 | 1,241,840 | 1,241,840 | 1,217,590 | 1,217,590 | 1,063,930 | 1,063,930 | 1,064,060 | 1,064,060 | 1,124,920 | 1,124,920 | 1,193,370 | 1,193,370 | 974,010 | 974,010 | 778,888 | 778,888 |
| Total current liabilities | US$ in thousands | 308,371 | 513,658 | 260,751 | 325,415 | 227,743 | 227,743 | 215,689 | 215,689 | 153,787 | 153,787 | 126,382 | 126,382 | 182,731 | 182,731 | 313,060 | 313,060 | 306,549 | 306,549 | 230,431 | 230,431 |
| Working capital turnover | 2.57 | 2.59 | 2.60 | 2.73 | 2.66 | 2.55 | 2.46 | 2.22 | 2.17 | 2.35 | 2.46 | 3.02 | 3.59 | 3.71 | 4.10 | 3.71 | 4.38 | 4.07 | 4.56 | 4.23 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,261,882K ÷ ($1,968,110K – $308,371K)
= 2.57
The working capital turnover ratio of Cal-Maine Foods Inc. demonstrates a declining trend over the observed period. Initially, in August 2022, the ratio was relatively high at 4.23, indicating efficient use of working capital to generate sales. Subsequently, fluctuations occurred within the following months; the ratio increased slightly to 4.56 at the end of August 2022 but then decreased to 4.07 by late November 2022, before rebounding to 4.38 at the end of November 2022.
From early 2023 onward, the ratio continued a downward trajectory, with notable dips observed: it declined to 3.71 in late February 2023 and further dropped to 3.59 in early June 2023. Post mid-2023, the ratio experienced a more pronounced decline, reaching around 2.46 by early September 2023 and 2.35 at the end of November 2023. The declining trend persisted through the subsequent months, with the ratio falling to 2.17 in December 2023 and then marginally rising towards 2.46 in early March 2024 before stabilizing around 2.55 in May 2024 and increasing slightly to 2.73 by August 2024.
Overall, the data reflects a decreasing working capital turnover ratio over the analyzed period, signifying that the company is generating relatively less sales per unit of working capital over time. This trend could suggest decreased operational efficiency, expanding working capital without a proportional increase in sales, or changes in the company's operational cycle or management strategies. The ratio’s decline warrants further examination to understand underlying operational or market factors influencing this decrease.