Concentrix Corporation (CNXC)
Working capital turnover
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 7,114,710 | 6,324,470 | 5,587,020 |
| Total current assets | US$ in thousands | 2,858,650 | 1,754,330 | 1,543,060 |
| Total current liabilities | US$ in thousands | 2,074,040 | 1,132,120 | 968,214 |
| Working capital turnover | 9.07 | 10.16 | 9.72 |
November 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,114,710K ÷ ($2,858,650K – $2,074,040K)
= 9.07
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support its operations and sales activities.
Concentrix Corp.'s working capital turnover has shown a fluctuating trend over the past five years. In 2023, the ratio decreased to 9.07 from 10.16 in 2022 and 9.72 in 2021. This decrease suggests that the company's efficiency in utilizing its working capital to generate sales revenue has declined. It is possible that the company may have experienced challenges in managing its working capital efficiently or faced slowdowns in generating sales relative to its working capital investment.
It's important to note that a declining working capital turnover ratio may indicate potential liquidity issues or inefficient use of working capital resources. Concentrix Corp. should employ measures to optimize its working capital management in order to improve its operational efficiency and financial performance. Additionally, a detailed analysis of the company's working capital components such as accounts receivables, inventory, and accounts payable would provide further insights into the factors influencing the working capital turnover ratio.
Peer comparison
Nov 30, 2023