Carpenter Technology Corporation (CRS)

Working capital turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	2,756,000	3,797,300	3,802,500	3,757,400	3,628,400	2,335,500	2,122,700	1,929,400	1,783,800	1,653,000	1,518,600	1,473,100	1,423,200	1,447,900	1,686,200	1,913,600	2,166,400	2,370,500	2,391,900	2,373,400
Total current assets	US$ in thousands	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	1,266,300	1,377,100	1,357,700	1,309,600
Total current liabilities	US$ in thousands	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	452,100	516,000	499,400	466,600
Working capital turnover		2.45	3.80	4.11	4.30	4.41	2.96	2.75	2.61	2.40	2.16	2.02	1.85	1.75	1.64	1.90	2.07	2.66	2.75	2.79	2.82

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,756,000K ÷ ($1,591,200K – $466,300K)
= 2.45

The working capital turnover ratio measures how efficiently Carpenter Technology Corporation is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively using its current assets to support its operations.

From the data provided, the working capital turnover ratio has shown some fluctuations over the reporting periods. In the most recent quarter of June 30, 2024, the ratio stood at 2.45, which was lower compared to the previous quarter but still above 2, indicating that for every dollar of working capital invested, the company generated $2.45 in revenue.

Looking at the trend over the past few quarters, the ratio has generally been increasing, reaching a peak of 4.41 in June 30, 2023, before experiencing some variability. This trend suggests that Carpenter Technology Corporation has been improving its efficiency in utilizing its working capital to generate sales.

Overall, the company's working capital turnover ratio indicates that it has been efficiently managing its current assets to support its business operations and generate revenue, although some fluctuations in the ratio can be observed. It would be beneficial for Carpenter Technology Corporation to continue monitoring and managing its working capital effectively to sustain and potentially improve its operational efficiency in the future.