CorVel Corp (CRVL)

Working capital turnover

		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	Jun 30, 2020
Revenue (ttm)	US$ in thousands	895,589	871,308	845,638	816,780	795,311	773,521	750,604	732,508	718,562	704,478	689,600	669,917	646,230	620,381	597,379	575,664	552,644	554,158	560,744	571,686
Total current assets	US$ in thousands	274,710	383,161	363,333	333,258	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
Total current liabilities	US$ in thousands	16,792	216,738	212,859	200,585	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
Working capital turnover		3.47	5.24	5.62	6.16	6.76	7.30	7.87	9.13	9.47	10.02	9.46	8.46	6.90	6.32	5.46	5.02	5.19	5.52	6.01	6.66

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $895,589K ÷ ($274,710K – $16,792K)
= 3.47

CorVel Corp's working capital turnover ratio has shown fluctuations over the period from June 30, 2020, to March 31, 2025. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales.

Initially, the ratio was relatively high at 6.66 on June 30, 2020, and gradually decreased to 5.02 by June 30, 2021. This decline may indicate a decrease in the company's ability to efficiently convert its working capital into revenue during this period.

From December 31, 2021, to September 30, 2022, there was a notable improvement in the ratio, showing an increasing trend from 6.32 to 9.46. This increase suggests that CorVel Corp was able to improve its efficiency in utilizing working capital to generate sales during this period.

However, from June 30, 2023, to March 31, 2025, the working capital turnover ratio declined again, dropping from 9.13 to 3.47. This significant decrease may raise concerns about the company's operational efficiency and its ability to efficiently manage its working capital during this period.

Overall, CorVel Corp's working capital turnover ratio has shown variability over time, indicating fluctuations in the company's ability to efficiently utilize its working capital to generate sales. It is essential for the company to closely monitor this ratio and implement strategies to maintain or improve its efficiency in working capital management.