The Cooper Companies Inc. (COO)
Working capital turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,487,900 | 3,229,100 | 2,893,900 | 2,392,900 | 2,575,500 |
| Total current assets | US$ in thousands | 1,704,900 | 1,533,600 | 1,465,300 | 1,274,200 | 1,163,400 |
| Total current liabilities | US$ in thousands | 969,000 | 1,280,200 | 732,100 | 1,004,400 | 1,110,600 |
| Working capital turnover | 4.74 | 12.74 | 3.95 | 8.87 | 48.78 |
October 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,487,900K ÷ ($1,704,900K – $969,000K)
= 4.74
The working capital turnover of Cooper Companies, Inc. has displayed variations over the past five years. In 2019, the working capital turnover ratio was 50.25, indicating that the company efficiently converted its working capital into revenue during that period. However, this efficiency ratio decreased to 9.01 in 2020, before increasing to 3.99 in 2021 and 13.06 in 2022. Notably, in the most recent period ending October 31, 2023, the working capital turnover further improved to 4.88.
The fluctuation in the working capital turnover suggests changes in the company's ability to generate sales from its working capital. A lower ratio may imply that Cooper Companies, Inc. has either increased its investment in working capital or experienced a decrease in sales, resulting in less efficient utilization of its working capital. Conversely, a higher ratio indicates a more efficient use of working capital to generate sales.
Further analysis of the company's operational and financial activities is necessary to understand the reasons behind these variations and to determine the effectiveness of its working capital management strategies.
Peer comparison
Oct 31, 2023