Carpenter Technology Corporation (CRS)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	2,756,100	2,495,100	1,783,200	1,431,400	2,164,000
Total current assets	US$ in thousands	1,591,200	1,281,900	1,119,400	1,117,400	1,266,300
Total current liabilities	US$ in thousands	466,300	459,400	375,600	306,300	452,100
Working capital turnover		2.45	3.03	2.40	1.76	2.66

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,756,100K ÷ ($1,591,200K – $466,300K)
= 2.45

Carpenter Technology Corporation's working capital turnover has shown fluctuating trends over the past five years, ranging from 1.76 to 3.03. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio generally indicates that the company is effectively using its working capital to support its sales activities.

In 2023, the working capital turnover ratio peaked at 3.03, reflecting a strong efficiency in converting working capital into sales. However, in 2021, the ratio dropped to 1.76, signaling a potential inefficiency in utilizing working capital to generate revenue.

Overall, Carpenter Technology Corporation's working capital turnover has not shown a consistent trend, which may indicate fluctuations in the company's working capital management effectiveness. Further analysis of the company's working capital components and operational strategies may be necessary to assess the underlying factors contributing to these variations in the ratio over the years.