EPAM Systems Inc (EPAM)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 4,727,940 4,690,540 4,824,700 3,758,140 2,659,480
Total current assets US$ in thousands 2,426,250 3,091,360 2,759,620 2,269,480 1,912,780
Total current liabilities US$ in thousands 821,039 644,932 747,483 763,420 465,950
Working capital turnover 2.95 1.92 2.40 2.50 1.84

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,727,940K ÷ ($2,426,250K – $821,039K)
= 2.95

EPAM Systems Inc's working capital turnover has shown fluctuating trends over the past five years. The ratio increased from 1.84 in December 2020 to 2.50 in December 2021, indicating an improvement in the company's ability to efficiently utilize its working capital to generate sales. However, there was a slight decline in the ratio to 2.40 in December 2022, suggesting a potential decrease in the company's efficiency in managing its working capital.

Subsequently, there was a further decrease in the working capital turnover to 1.92 in December 2023, which might indicate a potential inefficiency in utilizing working capital to support sales activities. However, the ratio significantly increased to 2.95 in December 2024, reflecting a strong improvement in the company's efficiency in leveraging its working capital to drive sales.

Overall, the fluctuating trends in EPAM Systems Inc's working capital turnover suggest varying levels of efficiency in managing working capital to support revenue generation over the analyzed period. Monitoring this ratio closely will be crucial for assessing the company's operational efficiency and liquidity management in the future.