Calavo Growers Inc (CVGW)

Working capital turnover

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Revenue (ttm) US$ in thousands 868,955 967,561 976,896 1,056,974 1,142,970 1,189,047 1,219,347 1,163,641 1,108,513 1,056,752 1,018,153 967,811 969,733 1,022,484 1,080,072 1,204,139 1,213,831 1,197,400 1,185,276 1,122,381
Total current assets US$ in thousands 245,597 133,370 150,360 144,740 132,911 125,674 148,445 185,937 179,537 152,641 158,267 170,387 145,120 135,895 138,414 146,430 144,530 127,515 152,234 152,383
Total current liabilities US$ in thousands 120,895 81,746 101,309 115,782 105,122 101,953 118,454 140,248 116,876 114,624 100,714 95,584 81,137 106,331 98,414 121,015 113,132 90,629 99,677 109,855
Working capital turnover 6.97 18.74 19.92 36.50 41.13 50.13 40.66 25.47 17.69 27.80 17.69 12.94 15.16 34.59 27.00 47.38 38.66 32.46 22.55 26.39

January 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $868,955K ÷ ($245,597K – $120,895K)
= 6.97

Calavo Growers Inc's working capital turnover has shown fluctuations over the past few quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. Higher ratios indicate better efficiency in managing working capital.

From the data provided, we can see that the working capital turnover ratio has varied significantly, ranging from a low of 6.97 in Jan 31, 2024, to a high of 50.13 in Oct 31, 2022. The ratio seems to have peaked in the earlier quarters of the sample period and then decreased before increasing again.

The highest working capital turnover ratio was seen in Oct 31, 2022, indicating strong efficiency in utilizing working capital to generate revenue. This could suggest effective management of short-term assets and liabilities during that period.

On the other hand, the lowest ratio was observed in Jan 31, 2024, indicating a decline in efficiency in utilizing working capital. This could imply that the company may have faced challenges in optimizing its short-term assets and liabilities in that specific period.

Overall, the trend of the working capital turnover ratio for Calavo Growers Inc appears to be fluctuating with some periods of strong efficiency and some periods of lower efficiency. It would be important to analyze the underlying reasons for these fluctuations to better understand the company's working capital management practices.