CSW Industrials, Inc. (CSW)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 878,301 | 792,840 | 757,904 | 626,435 | 419,205 |
| Total current assets | US$ in thousands | 592,861 | 331,410 | 323,056 | 300,147 | 214,553 |
| Total current liabilities | US$ in thousands | 147,202 | 115,836 | 108,039 | 117,402 | 82,748 |
| Working capital turnover | 1.97 | 3.68 | 3.52 | 3.43 | 3.18 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $878,301K ÷ ($592,861K – $147,202K)
= 1.97
The working capital turnover ratio of CSW Industrials, Inc. exhibits a generally upward trend from March 31, 2021, through March 31, 2024, indicating an improvement in the company's efficiency in using its working capital to generate sales. Specifically, the ratio increased from 3.18 in 2021 to 3.43 in 2022, and further to 3.52 in 2023, culminating in a peak of 3.68 in 2024. This progression suggests that the company became increasingly effective at utilizing its working capital to support revenue generation over this period.
However, a notable decline is observed in the ratio by March 31, 2025, where the ratio drops sharply to 1.97. This decline indicates a significant reduction in the efficiency of working capital utilization, implying that for each dollar of working capital, the company is generating considerably less sales than in prior years. This downturn could be attributable to a variety of factors, including increased operating costs, a slowdown in sales growth, an increase in working capital levels without a proportional rise in sales, or changes in operational efficiencies.
Overall, the trend observed up to 2024 reflects an improving efficiency in managing working capital relative to sales, but the substantial decrease in 2025 warrants further investigation into operational or financial changes that may have impacted this metric.
Peer comparison
Mar 31, 2025