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.