Catalent Inc (CTLT)

Working capital turnover

		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	Mar 31, 2020	Dec 31, 2019
Revenue (ttm)	US$ in thousands	4,422,000	4,381,000	4,135,000	4,098,000	4,223,000	4,263,000	4,495,000	4,731,000	4,799,000	4,802,000	4,703,000	4,483,000	4,177,000	3,998,000	5,904,000	5,611,600	5,422,000	5,240,700	2,872,400	2,729,300
Total current assets	US$ in thousands	2,507,000	2,597,000	2,523,000	2,570,000	2,614,000	2,692,000	2,738,000	2,919,000	2,699,000	2,917,000	3,025,000	2,974,000	3,931,000	2,918,000	2,774,500	2,518,900	2,356,100	2,293,000	1,746,100	1,300,500
Total current liabilities	US$ in thousands	998,000	1,031,000	1,007,000	1,036,000	1,534,000	1,530,000	1,487,000	1,552,000	969,000	1,098,000	1,046,000	1,045,000	1,096,000	1,196,000	1,139,200	1,024,000	919,700	893,000	917,100	658,100
Working capital turnover		2.93	2.80	2.73	2.67	3.91	3.67	3.59	3.46	2.77	2.64	2.38	2.32	1.47	2.32	3.61	3.75	3.77	3.74	3.46	4.25

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,422,000K ÷ ($2,507,000K – $998,000K)
= 2.93

The working capital turnover of Catalent Inc has shown fluctuations over the periods analyzed. The working capital turnover ratio indicates how efficiently the company is using its working capital to generate revenue. A higher turnover ratio is generally preferred as it signifies that the company is able to efficiently manage its working capital to generate sales.

From the data provided, we see that the working capital turnover ratio ranged from a low of 1.47 to a high of 4.25 over the 21 periods analyzed. The ratio was highest at 4.25 in the third quarter of 2020, indicating a strong ability to generate revenue relative to its working capital investment at that time. Conversely, the ratio was lowest at 1.47 in the fourth quarter of 2021, suggesting a less efficient use of working capital to generate sales during that period.

Overall, there seems to be a fluctuating trend in the working capital turnover ratio for Catalent Inc over the periods, with some variability in the efficiency of working capital management. Further analysis would be required to understand the factors driving these fluctuations and to assess the overall effectiveness of the company's working capital management strategies.