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.