Commercial Metals Company (CMC)

Working capital turnover

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Revenue (ttm)	US$ in thousands	7,878,080	8,095,050	8,364,790	8,536,410	8,759,370	9,226,700	9,389,600	9,361,170	9,117,680	8,467,780	7,801,570	7,252,900	6,656,150	6,046,880	5,534,950	5,430,800	5,429,840	5,563,710	5,833,520	5,888,080
Total current assets	US$ in thousands	3,292,770	3,239,630	3,198,090	3,243,830	3,144,160	3,141,640	3,278,150	3,224,110	3,441,470	3,443,570	3,490,250	2,786,380	2,736,830	2,518,480	2,205,640	2,169,200	2,214,100	2,144,990	2,084,980	2,014,580
Total current liabilities	US$ in thousands	834,850	764,954	762,547	786,955	843,714	852,944	1,066,150	1,077,550	1,356,990	1,390,690	825,201	892,120	980,473	853,367	674,093	613,199	745,263	627,343	649,134	601,964
Working capital turnover		3.21	3.27	3.43	3.47	3.81	4.03	4.24	4.36	4.37	4.12	2.93	3.83	3.79	3.63	3.61	3.49	3.70	3.67	4.06	4.17

August 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,878,080K ÷ ($3,292,770K – $834,850K)
= 3.21

The working capital turnover ratio for Commercial Metals Company has fluctuated over the past few periods. The company's ability to efficiently utilize its working capital has shown variability, with the ratio ranging from a low of 2.93 to a high of 4.37.

In general, a higher working capital turnover ratio indicates that the company is effectively managing its working capital to generate sales revenue. For instance, a ratio of 4.37 implies that the company generates $4.37 in sales revenue for every dollar of working capital invested.

However, it is important to note the downward trend in the ratio from the peak of 4.37 in November 2022 to the low of 2.93 in February 2022. This suggests a potential decrease in efficiency in utilizing working capital during that period.

Overall, the trend in the working capital turnover ratio for Commercial Metals Company indicates some fluctuations in the company's ability to efficiently utilize its working capital to generate sales revenue. Further analysis and investigation may be necessary to understand the factors contributing to these fluctuations and to ensure effective working capital management in the future.