Carpenter Technology Corporation (CRS)

Working capital turnover

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Revenue (ttm) US$ in thousands 2,877,100 2,920,200 2,878,100 2,825,400 2,759,700 2,719,100 2,724,300 2,679,200 2,550,200 2,355,900 2,154,800 1,971,700 1,836,400 1,694,200 1,557,100 1,509,900 1,475,600 1,491,300 1,724,800 1,949,000
Total current assets US$ in thousands 1,764,700 1,665,600 1,640,300 1,560,300 1,591,200 1,453,000 1,410,200 1,321,900 1,281,900 1,332,600 1,283,400 1,151,500 1,119,400 1,399,700 1,044,300 1,126,900 1,117,400 1,150,400 1,152,600 1,187,900
Total current liabilities US$ in thousands 483,700 444,200 432,100 406,200 466,300 453,400 485,700 448,600 459,400 544,000 510,300 410,900 375,600 633,800 294,300 332,400 306,300 269,300 265,800 264,500
Working capital turnover 2.25 2.39 2.38 2.45 2.45 2.72 2.95 3.07 3.10 2.99 2.79 2.66 2.47 2.21 2.08 1.90 1.82 1.69 1.94 2.11

June 30, 2025 calculation

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

The analysis of Carpenter Technology Corporation's working capital turnover ratios over the specified periods indicates notable fluctuations and trends in operational efficiency. Starting from September 30, 2020, with a ratio of 2.11, there was a decline through December 31, 2020, to 1.94, followed by a more significant decrease reaching 1.69 by March 31, 2021. This decline suggests a reduction in the company's efficiency in generating sales from its working capital during this period.

Post-March 2021, the ratio exhibited a recovery and upward trend, reaching 1.82 by June 30, 2021, and continuing to improve through September 30, 2021 (1.90), and further increasing to 2.08 by December 31, 2021. The upward trajectory persisted into 2022, with ratios of 2.21 on March 31, 2022, and 2.47 on June 30, 2022. The most noticeable increase occurred in the subsequent year, reaching 2.66 as of September 30, 2022, and peaking at 2.79 on December 31, 2022. This rising trend may reflect enhanced efficiency in working capital utilization, potentially driven by operational improvements or strategic adjustments.

The ratio continued its ascent into 2023, achieving 2.99 on March 31, 2023, and peaking at 3.10 on June 30, 2023. However, a slight decline ensued, with the ratio falling to 3.07 on September 30, 2023, and further decreasing to 2.95 by December 31, 2023. In the subsequent quarters, the ratio tapered down to 2.72 on March 31, 2024, and stabilized around 2.45 to 2.38 through June to December 2024. Toward the end of the period, it edged slightly upward again, reaching 2.39 on March 31, 2025, and then decreasing marginally to 2.25 by June 30, 2025.

Overall, the working capital turnover demonstrates an initial decline, followed by a substantial recovery and peak around late 2022 and mid-2023, with some moderation thereafter. The fluctuations may indicate periods of operational adjustment, changes in sales efficiency, or shifts in working capital management practices. The recent stabilization at approximately 2.25 to 2.45 suggests a relatively steady efficiency level, though slightly lower than the peak levels observed during 2022 and mid-2023.