Carpenter Technology Corporation (CRS)

Working capital turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	2,877,100	2,759,700	2,550,300	1,836,300	1,475,600
Total current assets	US$ in thousands	1,764,700	1,591,200	1,281,900	1,119,400	1,117,400
Total current liabilities	US$ in thousands	483,700	466,300	459,400	375,600	306,300
Working capital turnover		2.25	2.45	3.10	2.47	1.82

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,877,100K ÷ ($1,764,700K – $483,700K)
= 2.25

The working capital turnover ratio for Carpenter Technology Corporation has demonstrated fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 1.82 in 2021 to 2.47 in 2022, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales during this period. This upward trend continued into 2023, with the ratio reaching 3.10, reflecting an even more efficient deployment of working capital relative to sales.

However, after peaking in 2023, the ratio experienced a decline in subsequent years, decreasing to 2.45 in 2024 and further to 2.25 in 2025. This downward movement suggests a reduction in the efficiency of working capital utilization, potentially due to a variety of factors such as increased working capital levels without a proportional increase in sales, or changes in operational efficiency.

Overall, the trend indicates a period of improving operating efficiency up to 2023, followed by a decline in subsequent years. The ratio's rise and fall over this timeframe highlight the company's varying effectiveness in managing its working capital relative to sales generation, which may warrant further qualitative analysis to understand underlying operational or strategic shifts influencing this metric.