Dynatrace Holdings LLC (DT)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	1,470,110	1,154,900	931,945	707,409	550,303
Total current assets	US$ in thousands	1,605,300	1,118,180	948,422	680,282	487,777
Total current liabilities	US$ in thousands	1,258,550	1,037,040	865,599	647,911	490,183
Working capital turnover		4.24	14.23	11.25	21.85	—

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,470,110K ÷ ($1,605,300K – $1,258,550K)
= 4.24

The working capital turnover of Dynatrace Holdings LLC has shown variations over the past five years.

In 2024, the working capital turnover ratio was 4.24, indicating that the company generated $4.24 in revenue for every dollar invested in working capital during the fiscal year. This ratio represents a decrease from the previous year, suggesting a less efficient utilization of working capital to generate revenue.

In 2023, the working capital turnover significantly improved to 14.23, reflecting a substantial increase in revenue generation efficiency compared to the prior year. This sharp increase may signal improved operational efficiency, tighter management of current assets, or better inventory and receivables management.

Similarly, in 2022, the working capital turnover was 11.25, indicating a relatively high efficiency in converting working capital into revenue. This figure suggests that the company effectively utilized its current assets to support its sales activities during that fiscal year.

In 2021, the working capital turnover ratio was 21.85, representing a significant improvement in efficiency compared to the previous year. This increase indicates that the company managed to generate a higher level of revenue relative to its working capital investment, potentially through effective management of working capital components.

Notably, there is no data available for the working capital turnover ratio in 2020, so we cannot analyze the trend for that year.

Overall, the analysis of Dynatrace Holdings LLC's working capital turnover ratio indicates some fluctuations in efficiency in converting working capital into sales revenue over the past five years. It would be beneficial for the company to further investigate the underlying reasons for these fluctuations to optimize its working capital management and improve overall operational performance.