CorVel Corp (CRVL)
Working capital turnover
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 795,233 | 773,443 | 750,524 | 732,427 | 718,490 | 704,406 | 689,527 | 669,842 | 646,167 | 620,318 | 597,314 | 575,598 | 552,099 | 553,613 | 560,225 | 571,193 | 592,201 | 596,261 | 594,251 | 595,457 |
| Total current assets | US$ in thousands | 302,231 | 294,392 | 281,875 | 267,950 | 243,770 | 256,743 | 248,383 | 260,635 | 264,994 | 268,675 | 272,046 | 266,877 | 268,941 | 259,232 | 242,308 | 224,436 | 208,991 | 210,552 | 219,086 | 221,609 |
| Total current liabilities | US$ in thousands | 184,499 | 188,387 | 186,499 | 187,731 | 167,887 | 186,426 | 175,510 | 181,405 | 171,370 | 170,537 | 162,648 | 152,258 | 162,460 | 158,822 | 149,077 | 138,535 | 133,689 | 135,725 | 132,941 | 130,735 |
| Working capital turnover | 6.75 | 7.30 | 7.87 | 9.13 | 9.47 | 10.02 | 9.46 | 8.45 | 6.90 | 6.32 | 5.46 | 5.02 | 5.18 | 5.51 | 6.01 | 6.65 | 7.86 | 7.97 | 6.90 | 6.55 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $795,233K ÷ ($302,231K – $184,499K)
= 6.75
The working capital turnover ratio for CorVel Corp has shown fluctuations over the past several quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively using its current assets to drive sales.
In the latest quarter, the working capital turnover ratio was 6.75, which indicates that for every dollar of working capital invested, the company generated approximately $6.75 in sales revenue. The ratio has been on a declining trend since the peak of 10.02 in December 2022.
The decreasing trend in the working capital turnover ratio could suggest that the company's efficiency in generating sales from its working capital has decreased over the past few quarters. This could be a cause for concern as it may imply that the company's working capital management practices need improvement.
It is important for CorVel Corp to closely monitor and analyze the reasons behind the fluctuations in the working capital turnover ratio to ensure efficient utilization of working capital and sustainable growth in sales revenue.