Cavco Industries Inc (CVCO)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,015,460 | 1,794,790 | 2,142,710 | 1,627,160 | 1,108,050 |
| Total current assets | US$ in thousands | 910,186 | 851,799 | 804,579 | 744,117 | 651,799 |
| Total current liabilities | US$ in thousands | — | 273,267 | 293,391 | 294,170 | 237,104 |
| Working capital turnover | 2.21 | 3.10 | 4.19 | 3.62 | 2.67 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,015,460K ÷ ($910,186K – $—K)
= 2.21
Based on the provided data, the working capital turnover for Cavco Industries Inc has shown fluctuations over the past five years. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.
In March 2021, the working capital turnover was 2.67, indicating that Cavco Industries generated $2.67 in sales for every dollar of working capital invested. This ratio increased to 3.62 in March 2022, suggesting improved efficiency in working capital management.
Furthermore, in March 2023, the working capital turnover ratio continued to increase to 4.19, reaching its peak over the five-year period. This significant rise indicates that the company was able to generate even more sales revenue relative to its working capital investment.
However, in March 2024, the working capital turnover ratio dropped to 3.10, signaling a decrease in efficiency in utilizing working capital to drive sales. This decline may warrant further investigation into the company's working capital management practices during that period.
Lastly, in March 2025, the working capital turnover fell further to 2.21, indicating a notable reduction in efficiency compared to the previous year. This decline suggests that Cavco Industries may have faced challenges in optimizing its working capital to support sales growth or maintain operations during this period.
Overall, the trend in working capital turnover for Cavco Industries Inc shows fluctuations, with notable increases and decreases over the past five years. Analyzing these changes can provide insights into the company's operational efficiency and working capital management strategies.
Peer comparison
Mar 31, 2025