Cavco Industries Inc (CVCO)
Working capital turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,794,792 | 1,851,054 | 1,904,888 | 2,030,250 | 2,142,713 | 2,171,812 | 2,102,923 | 1,885,074 | 1,627,158 | 1,428,181 | 1,285,239 | 1,183,672 | 1,108,051 | 1,056,884 | 1,041,834 | 1,052,533 | 1,061,774 | 1,047,552 | 1,007,530 | 980,385 |
| Total current assets | US$ in thousands | 851,799 | 833,047 | 875,443 | 858,687 | 804,579 | 832,554 | 819,791 | 748,025 | 744,117 | 703,549 | 632,998 | 667,864 | 651,799 | 625,719 | 597,424 | 547,991 | 516,185 | 501,986 | 486,632 | 479,048 |
| Total current liabilities | US$ in thousands | 273,267 | 271,172 | 305,475 | 293,376 | 293,391 | 278,423 | 306,051 | 304,675 | 294,170 | 272,762 | 282,271 | 242,187 | 237,104 | 213,342 | 208,221 | 179,056 | 172,102 | 161,790 | 169,697 | 175,330 |
| Working capital turnover | 3.10 | 3.29 | 3.34 | 3.59 | 4.19 | 3.92 | 4.09 | 4.25 | 3.62 | 3.32 | 3.66 | 2.78 | 2.67 | 2.56 | 2.68 | 2.85 | 3.09 | 3.08 | 3.18 | 3.23 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,794,792K ÷ ($851,799K – $273,267K)
= 3.10
The working capital turnover ratio for Cavco Industries Inc has shown some fluctuations over the past few quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In the most recent quarter as of March 31, 2024, the working capital turnover stood at 3.10, indicating that the company generated $3.10 in sales for every $1 of working capital invested. This ratio decreased compared to the previous quarter which was 3.29, suggesting a potential decrease in efficiency in utilizing working capital to generate sales.
Looking back over the past several quarters, the working capital turnover has shown some variability, reaching a peak of 4.25 in the second quarter of 2022 and a low of 2.56 in the fourth quarter of 2020. Generally, a higher working capital turnover ratio is preferable as it indicates more efficient use of working capital.
It is important for Cavco Industries Inc to closely monitor its working capital turnover ratio to ensure that it remains at an optimal level, balancing the need to have sufficient working capital to support operations with the efficiency of generating sales revenue. Additional analysis and comparison with industry benchmarks could provide further insights into the company's financial performance and operational efficiency.