Cal-Maine Foods Inc (CALM)
Working capital turnover
| Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,348,374 | 2,396,265 | 2,688,969 | 2,962,667 | 3,155,135 | 3,059,414 | 2,534,012 | 2,123,411 | 1,796,346 | 1,553,178 | 1,434,020 | 1,388,348 | 1,348,981 | 1,452,523 | 1,439,031 | 1,403,225 | 1,351,609 | 1,178,848 | 1,217,253 | 1,261,771 |
| Total current assets | US$ in thousands | 1,241,840 | 1,217,590 | 1,063,930 | 1,064,060 | 1,124,920 | 1,193,370 | 974,010 | 778,888 | 661,519 | 522,710 | 481,129 | 460,469 | 519,931 | 522,903 | 493,780 | 473,184 | 522,251 | 445,370 | 448,838 | 502,940 |
| Total current liabilities | US$ in thousands | 227,743 | 215,689 | 153,787 | 126,382 | 182,731 | 313,060 | 306,549 | 230,431 | 184,674 | 121,373 | 116,388 | 97,543 | 90,097 | 100,804 | 94,118 | 77,879 | 93,183 | 89,660 | 102,848 | 75,489 |
| Working capital turnover | 2.32 | 2.39 | 2.95 | 3.16 | 3.35 | 3.48 | 3.80 | 3.87 | 3.77 | 3.87 | 3.93 | 3.83 | 3.14 | 3.44 | 3.60 | 3.55 | 3.15 | 3.31 | 3.52 | 2.95 |
June 1, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,348,374K ÷ ($1,241,840K – $227,743K)
= 2.32
The working capital turnover of Cal-Maine Foods Inc has been relatively stable over the past few periods, ranging from a low of 2.32 to highs above 3.80. This ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively utilizing its working capital to generate revenue.
In the recent periods, the working capital turnover has been consistently above 3.00, indicating that Cal-Maine Foods Inc is efficiently utilizing its working capital to generate sales. This suggests that the company is effectively managing its current assets and liabilities to support its operations and drive growth.
Overall, the trend in the working capital turnover of Cal-Maine Foods Inc shows a positive picture of the company's ability to leverage its working capital efficiently to drive revenue generation. Maintaining a healthy working capital turnover ratio is crucial for sustaining operations and supporting business growth in the long term.