Edgewell Personal Care Co (EPC)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,251,600 | 2,171,700 | 2,087,300 | 1,949,700 | 2,141,000 |
| Total current assets | US$ in thousands | 962,400 | 942,200 | 1,135,700 | 983,600 | 1,044,400 |
| Total current liabilities | US$ in thousands | 523,400 | 539,500 | 536,800 | 510,500 | 659,600 |
| Working capital turnover | 5.13 | 5.39 | 3.49 | 4.12 | 5.56 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,251,600K ÷ ($962,400K – $523,400K)
= 5.13
The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales. A higher working capital turnover ratio generally indicates better efficiency in managing working capital.
Edgewell Personal Care Co's working capital turnover has fluctuated over the past five years, with the ratio declining from 5.56 in 2019 to 3.49 in 2021 before increasing to 5.51 in 2022 and then slightly decreasing to 5.13 in 2023. This fluctuation may indicate varying levels of efficiency in managing its working capital during these years.
The decline in 2021 suggests that the company may have faced challenges in efficiently using its working capital to generate revenue. However, the subsequent increase in 2022 and the relatively stable ratio in 2023 indicate an improvement in the efficient use of working capital.
Overall, a relatively high working capital turnover ratio over the years suggests that Edgewell Personal Care Co has been effectively using its working capital to support sales generation, contributing to potential financial stability and growth.
Peer comparison
Sep 30, 2023