DXC Technology Co (DXC)
Working capital turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,871,000 | 13,088,000 | 13,262,000 | 13,457,000 | 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 |
| Total current assets | US$ in thousands | 5,363,000 | 5,075,000 | 5,007,000 | 4,963,000 | 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 |
| Total current liabilities | US$ in thousands | 4,411,000 | 3,788,000 | 4,004,000 | 4,093,000 | 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 |
| Working capital turnover | 13.52 | 10.17 | 13.22 | 15.47 | 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 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,871,000K ÷ ($5,363,000K – $4,411,000K)
= 13.52
Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate revenues. It is calculated by dividing net sales by average working capital. A higher working capital turnover ratio indicates that the company is effectively using its working capital to generate sales.
Looking at the data provided for DXC Technology Co, we can see that the working capital turnover ratio has been fluctuating over the years. The ratio was 8.05 on June 30, 2020, indicating that for each dollar of working capital, the company generated $8.05 in sales during that period. The ratio was not available on September 30, 2020.
The ratio significantly increased to 305.67 on March 31, 2021, which suggests a substantial improvement in operational efficiency and working capital management. However, this sharp increase may be due to specific circumstances or one-time events rather than a sustainable trend.
Subsequently, the ratio decreased to 13.52 on March 31, 2025, indicating a decline in the company's ability to generate sales relative to its working capital. This could potentially signal inefficiencies in managing working capital or a slowdown in revenue generation.
Overall, it is important to analyze the working capital turnover ratio in conjunction with other financial ratios and qualitative factors to gain a holistic understanding of DXC Technology Co's financial performance and operational efficiency.
Peer comparison
Mar 31, 2025