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.
Peer comparison
Dec 31, 2024