Digi International Inc (DGII)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	424,046	444,849	388,225	308,632	279,271
Total current assets	US$ in thousands	154,447	166,198	166,208	246,658	170,058
Total current liabilities	US$ in thousands	89,337	85,978	96,507	58,941	61,230
Working capital turnover		6.51	5.55	5.57	1.64	2.57

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $424,046K ÷ ($154,447K – $89,337K)
= 6.51

Digi International Inc's working capital turnover has shown a fluctuating trend over the past five years. The ratio has increased from 2.57 in 2020 to 6.51 in 2024, indicating a substantial improvement in the company's efficiency in utilizing its working capital. This implies that Digi International Inc has been able to generate 6.51 times revenue from its working capital in 2024.

The significant increase in the working capital turnover ratio suggests that the company has become more adept at managing its working capital to support its operations and sales activities. This efficiency may be attributed to better inventory management, debtor collection, and creditor payment processes.

Overall, the upward trend in working capital turnover reflects positively on Digi International Inc's operational efficiency and financial management strategies over the past five years.