CAVA Group, Inc. (CAVA)

Working capital turnover

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022
Revenue (ttm) US$ in thousands 1,036,533 963,713 913,488 845,224 784,623 728,700 681,465 645,170 608,191 564,119 551,350
Total current assets US$ in thousands 403,025 394,154 393,260 369,766 352,014 354,912 363,649 374,614 46,987 58,150 58,150
Total current liabilities US$ in thousands 134,278 132,636 134,441 123,601 111,308 109,036 112,931 114,698 106,088 84,318 84,318
Working capital turnover 3.86 3.69 3.53 3.43 3.26 2.96 2.72 2.48 — — —

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,036,533K ÷ ($403,025K – $134,278K)
= 3.86

The analysis of CAVA Group, Inc.'s working capital turnover reveals a progressive trend over the examined periods. Data indicates that the ratio was non-existent or not reported as of September 30, 2022, through March 31, 2023, suggesting either insufficient data or minimal activity in this metric during that timeframe. Starting from June 30, 2023, the ratio measured at 2.48 and showed consistent improvement, reaching 2.72 by September 30, 2023. This upward trajectory continued with the ratio increasing to 2.96 by December 31, 2023, and further ascending to 3.26 in March 2024. The trend persisted with ratios of 3.43, 3.53, 3.69, and 3.86 recorded on June 30, 2024; September 30, 2024; December 31, 2024; and March 31, 2025, respectively.

This steady increase in working capital turnover signifies that the company has become more efficient in utilizing its working capital to generate sales. The rising ratios indicate improved operational efficiency and better management of short-term assets and liabilities. Assuming that the measures of working capital (current assets minus current liabilities) and sales are consistent, the trend suggests that CAVA Group, Inc. is increasingly leveraging its working capital to support higher sales levels over time. It is notable that this positive progression begins from mid-2023, reflecting changes in operational practices, sales growth, or management strategies aimed at optimizing working capital utilization.