EPAM Systems Inc (EPAM)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 4,656,740 4,741,060 3,750,950 2,654,810 2,281,750
Total current assets US$ in thousands 3,091,360 2,759,620 2,269,480 1,912,780 1,474,210
Total current liabilities US$ in thousands 644,932 747,483 763,420 465,950 386,948
Working capital turnover 1.90 2.36 2.49 1.83 2.10

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,656,740K ÷ ($3,091,360K – $644,932K)
= 1.90

The working capital turnover of EPAM Systems Inc has exhibited fluctuations over the past five years. The company's working capital turnover ratio decreased from 2.11 in 2019 to 1.84 in 2020, indicating a decline in the efficiency of utilizing working capital to generate revenue during that period.

However, there was a subsequent improvement in the efficiency of working capital management as the ratio increased to 2.50 in 2021, suggesting that the company was able to generate more revenue per unit of working capital invested. This trend continued in 2022 with a further increase in the working capital turnover ratio to 2.40.

In 2023, the working capital turnover ratio decreased to 1.92, indicating a lower efficiency in utilizing working capital to drive revenue generation compared to the previous year. Overall, while there have been fluctuations in the working capital turnover ratio over the years, it is important for EPAM Systems Inc to focus on maintaining and improving operational efficiencies to effectively manage its working capital for sustainable growth.