Embecta Corp (EMBC)
Working capital turnover
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 | ||
---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 1,116,800 | 1,115,200 | 1,110,600 | 1,115,600 | 1,108,100 | 1,123,300 | |||
Total current assets | US$ in thousands | 719,500 | 749,100 | 787,500 | 756,300 | 761,700 | 664,700 | 580,600 | 426,500 | 258,300 |
Total current liabilities | US$ in thousands | 326,600 | 353,500 | 385,800 | 357,700 | 370,300 | 301,000 | 228,500 | 168,900 | 159,100 |
Working capital turnover | 2.84 | 2.82 | 2.76 | 2.80 | 2.83 | 3.09 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,116,800K ÷ ($719,500K – $326,600K)
= 2.84
The working capital turnover for Embecta Corp has shown relatively stable performance over the past few quarters, with the ratio ranging from 2.76 to 3.09. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio suggests that the company is effectively managing its working capital to support its sales activities.
Embecta Corp's working capital turnover has generally remained above 2.80, with only one exception in the most recent quarter where it dipped to 2.76. This slight decrease may indicate a temporary inefficiency in using working capital to generate revenue. However, it is important to note that the ratio has shown consistency around the 2.80 range in most quarters, which suggests that the company has been able to effectively convert its working capital into sales over the period analyzed.
Overall, Embecta Corp's working capital turnover provides insights into its operational efficiency and effectiveness in managing its working capital resources to support its revenue generation activities.
Peer comparison
Dec 31, 2023