Commercial Metals Company (CMC)
Working capital turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,878,070 | 8,759,230 | 9,122,140 | 6,669,820 | 5,420,640 |
| Total current assets | US$ in thousands | 3,292,770 | 3,144,160 | 3,441,470 | 2,736,830 | 2,214,100 |
| Total current liabilities | US$ in thousands | 834,850 | 843,714 | 1,356,990 | 980,473 | 745,263 |
| Working capital turnover | 3.21 | 3.81 | 4.38 | 3.80 | 3.69 |
August 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,878,070K ÷ ($3,292,770K – $834,850K)
= 3.21
Commercial Metals Company's working capital turnover has shown some fluctuations over the past five years, ranging from 3.21 in 2024 to 4.38 in 2022. The working capital turnover measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support sales growth.
The decreasing trend from 2022 to 2024 may suggest that the company's efficiency in utilizing working capital to generate sales revenue has declined. It is important for the company to closely monitor and manage its working capital to ensure optimal efficiency in supporting its operations and growth. Further analysis of the company's working capital components and operations may provide insights into the factors influencing the working capital turnover ratio and opportunities for improvement.
Peer comparison
Aug 31, 2024