DXC Technology Co (DXC)
Working capital turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,667,000 | 14,430,000 | 16,265,000 | 17,729,000 | 19,577,000 |
| Total current assets | US$ in thousands | 5,135,000 | 6,124,000 | 7,446,000 | 8,208,000 | 8,987,000 |
| Total current liabilities | US$ in thousands | 4,394,000 | 5,187,000 | 6,853,000 | 8,150,000 | 7,895,000 |
| Working capital turnover | 18.44 | 15.40 | 27.43 | 305.67 | 17.93 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $13,667,000K ÷ ($5,135,000K – $4,394,000K)
= 18.44
The working capital turnover for DXC Technology Co has fluctuated over the past five years. The ratio provides insight into how efficiently the company is utilizing its working capital to generate sales. In 2021, the working capital turnover was exceptionally high at 305.67, indicating that the company generated a significant amount of sales relative to its working capital. However, this extremely high ratio may be influenced by specific factors like seasonality or one-time events.
In contrast, in 2022 and 2020, the working capital turnover was relatively lower at 27.43 and 17.93 respectively, suggesting that DXC Technology Co was not as efficient in utilizing its working capital to generate sales during those years. The ratios in 2023 and 2024 were closer to the 2022 levels, indicating a moderate improvement in efficiency compared to the lower ratio in 2020.
Overall, the trend in working capital turnover for DXC Technology Co shows variability over the past five years, with 2021 standing out as an exceptional year in terms of efficiency in utilizing working capital to drive sales. It would be important for investors and stakeholders to further investigate the reasons behind these fluctuations to assess the company's financial performance and operational efficiency.
Peer comparison
Mar 31, 2024