Embecta Corp (EMBC)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Revenue	US$ in thousands	1,118,700	1,112,000	1,126,300
Total current assets	US$ in thousands	761,000	749,100	664,700
Total current liabilities	US$ in thousands	374,000	353,500	301,000
Working capital turnover		2.89	2.81	3.10

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,118,700K ÷ ($761,000K – $374,000K)
= 2.89

The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales revenue. The trend analysis of Embecta Corp's working capital turnover over the three years indicates a relatively stable performance.

In 2022, the working capital turnover was 3.10, showing that the company generated $3.10 in sales for every dollar of working capital invested. This indicates efficient utilization of working capital to generate revenue.

In 2023, the working capital turnover slightly decreased to 2.81, suggesting that the company generated $2.81 in sales for every dollar of working capital. While there was a decrease in efficiency compared to the previous year, the ratio remained at a relatively healthy level.

In 2024, the working capital turnover increased to 2.89, indicating an improvement in the efficiency of working capital utilization to generate sales revenue compared to the previous year.

Overall, Embecta Corp's working capital turnover ratio has shown minor fluctuations over the years but has remained within a reasonable range, indicating that the company has been effectively managing its working capital to support its sales growth.