DXC Technology Co (DXC)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,871,000 | 13,667,000 | 14,430,000 | 16,265,000 | 17,729,000 |
| Total current assets | US$ in thousands | 5,363,000 | 5,135,000 | 6,124,000 | 7,446,000 | 8,208,000 |
| Total current liabilities | US$ in thousands | 4,411,000 | 4,394,000 | 5,187,000 | 6,853,000 | 8,150,000 |
| Working capital turnover | 13.52 | 18.44 | 15.40 | 27.43 | 305.67 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,871,000K ÷ ($5,363,000K – $4,411,000K)
= 13.52
The working capital turnover ratio provides insights into how efficiently a company is managing its working capital to generate revenue.
Analyzing the working capital turnover ratio of DXC Technology Co over the years, we observe a significant decline in efficiency. The company's working capital turnover has decreased from 305.67 in March 2021 to 13.52 in March 2025. This suggests that DXC Technology Co may be struggling to efficiently utilize its working capital to support its operations and generate sales.
A lower working capital turnover ratio indicates that the company may be holding excessive levels of inventory or accounts receivable relative to its sales levels. This could potentially lead to cash flow challenges and inefficiencies in the management of its current assets and liabilities.
Overall, the declining trend in DXC Technology Co's working capital turnover ratio raises concerns about the company's ability to efficiently convert its working capital into revenue, highlighting a need for closer monitoring and potential strategic adjustments in its working capital management practices.
Peer comparison
Mar 31, 2025