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