EPAM Systems Inc (EPAM)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	4,656,750	4,778,720	4,882,220	4,826,940	4,720,160	4,556,090	4,307,578	4,075,331	3,750,945	3,360,418	3,033,459	2,780,002	2,654,811	2,570,115	2,496,974	2,421,783	2,281,749	2,155,221	2,037,895	1,935,517
Total current assets	US$ in thousands	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	1,474,210	1,364,690	1,285,820	1,244,750
Total current liabilities	US$ in thousands	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	386,948	311,470	272,614	282,566
Working capital turnover		1.90	2.07	2.13	2.25	2.35	2.53	2.57	2.57	2.49	2.30	2.00	1.80	1.83	1.92	2.03	2.17	2.10	2.05	2.01	2.01

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,656,750K ÷ ($3,091,360K – $644,932K)
= 1.90

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations and generate sales.

In the case of EPAM Systems Inc, the working capital turnover has been decreasing over the quarters, from 2.66 in Q3 2022 to 2.12 in Q2 2023. This trend suggests that the company may be experiencing challenges in efficiently utilizing its working capital to support its sales activities.

A working capital turnover ratio of less than 1 may indicate inefficiencies in managing working capital, while a ratio greater than 1 demonstrates that the company is efficiently using its working capital to generate sales.

Overall, EPAM Systems Inc's working capital turnover ratio, ranging from 1.92 to 2.66 in the past eight quarters, indicates that the company has been relatively effective in utilizing its working capital to support its sales activities, although the decreasing trend in recent quarters may require further analysis to understand the underlying reasons and implications for the company's financial performance.