Enerpac Tool Group Corp (EPAC)
Working capital turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 598,204 | 571,223 | 528,660 | 493,292 | 654,758 |
| Total current assets | US$ in thousands | 355,640 | 342,380 | 357,435 | 341,132 | 730,325 |
| Total current liabilities | US$ in thousands | 148,120 | 153,188 | 134,764 | 105,522 | 300,401 |
| Working capital turnover | 2.88 | 3.02 | 2.37 | 2.09 | 1.52 |
August 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $598,204K ÷ ($355,640K – $148,120K)
= 2.88
The working capital turnover of Enerpac Tool Group Corp has exhibited variability over the past five years. The ratio, which measures the efficiency of the company's working capital management in generating sales, stood at 2.88 times in 2023, indicating that the company generated $2.88 in sales for every $1 of working capital. This represents a slight decline from the previous year's figure of 3.02 times.
The trend in the working capital turnover ratio suggests that the company's efficiency in utilizing its working capital to drive sales has fluctuated. The increase in 2022 followed by the decrease in 2023 may indicate a shift in the company's management of working capital. Overall, a higher working capital turnover ratio signifies more efficient utilization of working capital in generating sales, while a declining ratio may indicate challenges in converting working capital into revenue. It would be important for stakeholders to further investigate the factors contributing to the fluctuation in this ratio to assess the effectiveness of the company's working capital management strategy.
Peer comparison
Aug 31, 2023