DXC Technology Co (DXC)
Working capital turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,667,000 | 13,872,000 | 14,039,000 | 14,169,000 | 14,430,000 | 14,847,000 | 15,370,000 | 15,831,000 | 16,265,000 | 16,642,000 | 16,841,000 | 17,368,000 | 17,729,000 | 18,159,000 | 18,892,000 | 19,189,000 | 19,577,000 | 20,042,000 | 20,199,000 | 20,361,000 |
| Total current assets | US$ in thousands | 5,135,000 | 5,531,000 | 5,349,000 | 5,744,000 | 6,124,000 | 6,993,000 | 6,678,000 | 6,848,000 | 7,446,000 | 7,503,000 | 7,384,000 | 7,541,000 | 8,208,000 | 9,105,000 | 8,337,000 | 10,708,000 | 8,987,000 | 8,183,000 | 8,490,000 | 8,190,000 |
| Total current liabilities | US$ in thousands | 4,394,000 | 4,961,000 | 4,724,000 | 5,057,000 | 5,187,000 | 6,170,000 | 5,865,000 | 6,257,000 | 6,853,000 | 6,728,000 | 6,819,000 | 7,406,000 | 8,150,000 | 8,270,000 | 8,656,000 | 8,325,000 | 7,895,000 | 8,784,000 | 8,974,000 | 9,338,000 |
| Working capital turnover | 18.44 | 24.34 | 22.46 | 20.62 | 15.40 | 18.04 | 18.91 | 26.79 | 27.43 | 21.47 | 29.81 | 128.65 | 305.67 | 21.75 | — | 8.05 | 17.93 | — | — | — |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,667,000K ÷ ($5,135,000K – $4,394,000K)
= 18.44
The working capital turnover ratio for DXC Technology Co has shown variability over the periods provided. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is efficiently managing its working capital to generate sales.
From the data, we can observe fluctuations in the working capital turnover ratio. In the most recent period, the ratio was 18.44, indicating that the company generated $18.44 in sales for every dollar of working capital invested. This suggests that the company may have improved its efficiency in managing working capital compared to the previous periods.
However, it is important to note that there are significant fluctuations in the ratio over the periods provided. For example, the ratio spiked to 305.67 in March 2021, indicating an exceptional level of efficiency in utilizing working capital to generate sales revenue. This spike could be due to various factors like changes in business operations, management of accounts receivable, or inventory management.
Overall, an in-depth analysis of the underlying factors driving the fluctuations in the working capital turnover ratio would be necessary to provide a more comprehensive understanding of DXC Technology Co's working capital management effectiveness.
Peer comparison
Mar 31, 2024