Catalent Inc (CTLT)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,381,000 | 4,263,000 | 4,802,000 | 3,998,000 | 3,094,000 |
| Total current assets | US$ in thousands | 2,597,000 | 2,692,000 | 2,917,000 | 2,918,000 | 2,293,000 |
| Total current liabilities | US$ in thousands | 1,031,000 | 1,530,000 | 1,098,000 | 1,196,000 | 893,000 |
| Working capital turnover | 2.80 | 3.67 | 2.64 | 2.32 | 2.21 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,381,000K ÷ ($2,597,000K – $1,031,000K)
= 2.80
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is able to generate more sales revenue with less working capital.
Based on the data provided, Catalent Inc's working capital turnover ratio has fluctuated over the past five years. In 2024, the working capital turnover ratio was 2.80, which decreased from 3.67 in 2023 but was still higher than the ratios in 2022 (2.64), 2021 (2.32), and 2020 (2.21).
The decrease in the working capital turnover ratio from 2023 to 2024 may indicate that Catalent Inc was less efficient in utilizing its working capital to generate sales revenue during that period. However, it is important to consider other factors such as changes in sales volume, inventory management, and accounts receivable collection practices that could impact the working capital turnover ratio.
Overall, Catalent Inc's working capital turnover ratio has shown variability in recent years, suggesting fluctuations in the company's efficiency in managing working capital to support its operations and generate sales revenue. Monitoring this ratio over time can provide insights into the company's liquidity management and operational efficiency.
Peer comparison
Jun 30, 2024