Chuy's Holdings Inc (CHUY)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	461,310	422,215	396,467	320,952	426,357
Total current assets	US$ in thousands	80,370	87,818	114,464	94,561	16,783
Total current liabilities	US$ in thousands	48,766	44,358	42,372	43,318	36,199
Working capital turnover		14.60	9.72	5.50	6.26	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $461,310K ÷ ($80,370K – $48,766K)
= 14.60

Based on the working capital turnover data of Chuy's Holdings Inc provided in the table, we observe a trend of fluctuating values over the past five years. The working capital turnover ratio has been improving steadily from 5.50 in 2021 to 14.60 in 2023, indicating a more efficient utilization of working capital during this period.

A high working capital turnover ratio suggests that the company is effectively managing its working capital to generate sales revenue. This improvement could be attributed to better inventory management, efficient accounts receivable collection, or tighter control over accounts payable.

Overall, the increasing trend in the working capital turnover ratio reflects positively on the company's operational efficiency and financial performance, indicating that Chuy's Holdings Inc has been able to generate more revenue relative to its working capital investment in recent years.