EPAM Systems Inc (EPAM)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 4,727,940 4,636,850 4,621,460 4,645,070 4,690,550 4,764,590 4,839,370 4,864,020 4,824,690 4,700,850 4,462,469 4,148,975 3,758,140 3,374,173 3,037,877 2,788,894 2,659,478 2,568,760 2,504,620 2,423,824
Total current assets US$ in thousands 2,426,250 3,106,860 2,915,640 3,083,150 3,091,360 2,925,290 2,871,970 2,830,790 2,759,620 2,527,990 2,359,680 2,266,750 2,269,480 2,092,190 2,038,020 2,004,720 1,912,780 1,752,220 1,598,340 1,507,740
Total current liabilities US$ in thousands 821,039 681,046 602,458 658,530 644,932 613,578 584,065 682,858 747,483 727,957 684,703 683,252 763,420 632,547 522,948 463,761 465,950 414,831 365,580 389,321
Working capital turnover 2.95 1.91 2.00 1.92 1.92 2.06 2.12 2.26 2.40 2.61 2.66 2.62 2.50 2.31 2.01 1.81 1.84 1.92 2.03 2.17

December 31, 2024 calculation

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

The working capital turnover ratio of EPAM Systems Inc has shown some fluctuations over the years, ranging from 1.81 to 2.66. Generally, a higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue.

From March 31, 2020 to June 30, 2021, the ratio declined gradually from 2.17 to 2.01, suggesting a slight decrease in the company's ability to generate sales with its working capital during this period. However, from September 30, 2021 to June 30, 2022, the ratio increased steadily from 2.31 to 2.66, indicating an improvement in the company's efficiency in utilizing its working capital to support sales growth.

Although there were some fluctuations in the ratio over the following quarters, it generally remained above 2, indicating that EPAM Systems Inc has been effectively managing its working capital to support its operations and generate revenue. The spike in the ratio to 2.95 on December 31, 2024, suggests a significant improvement in the company's working capital efficiency, possibly due to better inventory management or tighter control over accounts receivable and accounts payable.

Overall, the working capital turnover ratio of EPAM Systems Inc reflects a good level of efficiency in utilizing its working capital to support its sales activities over the period under consideration.