Concentrix Corporation (CNXC)

Working capital turnover

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Revenue	US$ in thousands	9,618,900	7,114,710	6,324,470	5,587,020	4,719,530
Total current assets	US$ in thousands	2,842,420	2,858,650	1,754,330	1,543,060	1,423,380
Total current liabilities	US$ in thousands	1,995,810	2,074,040	1,132,120	968,214	1,008,660
Working capital turnover		11.36	9.07	10.16	9.72	11.38

November 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,618,900K ÷ ($2,842,420K – $1,995,810K)
= 11.36

Concentrix Corporation's working capital turnover has shown some fluctuations over the period analyzed. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In November 30, 2020, the working capital turnover ratio was 11.38, indicating that the company generated $11.38 in sales for every $1 of working capital invested. This suggests that Concentrix was efficiently utilizing its working capital to drive revenue.

However, in the following years, the working capital turnover ratio decreased. By November 30, 2021, the ratio dropped to 9.72, which could signify a potential decrease in the efficiency of working capital management.

There was a slight improvement in the ratio by November 30, 2022, where it increased to 10.16. This may indicate that Concentrix made adjustments to its working capital management practices to improve efficiency.

Subsequently, by November 30, 2023, the working capital turnover ratio dropped to 9.07, suggesting a potential struggle in efficiently utilizing working capital to generate sales.

In the most recent period, November 30, 2024, the working capital turnover ratio rebounded to 11.36, showing an improvement in efficiency compared to the previous year.

Overall, the analysis of Concentrix Corporation's working capital turnover ratio highlights fluctuations in the company's ability to generate sales revenue relative to its working capital. It could be beneficial for the company to closely monitor and possibly optimize its working capital management strategies to ensure more consistent and efficient utilization of resources.