CorVel Corp (CRVL)
Working capital turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 794,935 | 718,055 | 646,010 | 551,977 | 592,076 |
| Total current assets | US$ in thousands | 302,231 | 243,770 | 264,994 | 268,941 | 208,991 |
| Total current liabilities | US$ in thousands | 184,499 | 167,887 | 171,370 | 162,460 | 133,689 |
| Working capital turnover | 6.75 | 9.46 | 6.90 | 5.18 | 7.86 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $794,935K ÷ ($302,231K – $184,499K)
= 6.75
The working capital turnover ratio for CorVel Corp has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the company's working capital turnover ratio was 6.75, indicating that the company generated $6.75 in revenue for every dollar of working capital invested. This represented a decrease from the previous year's ratio of 9.46.
The trend over the five-year period shows varying levels of efficiency in utilizing working capital to generate sales. The peak performance was seen in March 31, 2023, with a ratio of 9.46, suggesting the company was highly effective in converting its working capital into revenue that year. However, this efficiency decreased in the following year before improving again in the latest fiscal period.
Overall, the company's working capital turnover ratios indicate that CorVel Corp has been able to effectively utilize its working capital to support its sales activities, with some fluctuations in efficiency year over year. It is essential for the company to continue monitoring and managing its working capital efficiency to ensure sustainable growth and profitability.