Deluxe Corporation (DLX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,121,760 | 2,192,260 | 2,238,000 | 2,022,200 | 1,790,800 |
| Total current assets | US$ in thousands | 611,639 | 760,988 | 704,000 | 620,500 | 506,600 |
| Total current liabilities | US$ in thousands | 625,516 | 819,065 | 752,300 | 683,400 | 411,800 |
| Working capital turnover | — | — | — | — | 18.89 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,121,760K ÷ ($611,639K – $625,516K)
= —
The working capital turnover ratio for Deluxe Corporation decreased significantly from 18.89 in December 31, 2020, to not available for the subsequent years of 2021, 2022, 2023, and 2024. This sharp decline in the ratio suggests a potential inefficiency in managing the company's working capital to generate sales revenue during those years. It may indicate issues with inventory management, accounts receivable collection, or creditor payment strategies. Further analysis and investigation into the company's working capital management practices are warranted to understand the reasons behind this decline and to implement corrective measures if necessary.