ESCO Technologies Inc (ESE)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 947,264 | 852,649 | 715,135 | 728,985 | 816,796 |
| Total current assets | US$ in thousands | 581,095 | 572,622 | 466,154 | 443,293 | 495,194 |
| Total current liabilities | US$ in thousands | 314,651 | 318,129 | 274,995 | 255,484 | 251,635 |
| Working capital turnover | 3.56 | 3.35 | 3.74 | 3.88 | 3.35 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $947,264K ÷ ($581,095K – $314,651K)
= 3.56
The working capital turnover ratio for Esco Technologies, Inc. has shown some fluctuation over the past five years. The ratio indicates the company's ability to effectively utilize its working capital to generate sales.
In 2023, the working capital turnover ratio improved to 3.59, reflecting an increase compared to the previous year. This suggests that the company was able to generate $3.59 in sales for every dollar of working capital invested.
Comparing this to the ratios in 2022 and 2021, which were 3.37 and 3.80 respectively, indicates a slight improvement in 2023. However, the ratio is lower than the 3.85 and 3.34 ratios seen in 2020 and 2019, signifying a slight decline in efficiency compared to those years.
Overall, it is important for the company to monitor and manage its working capital efficiently in order to optimize its sales generation. The upward trend in 2023 is a positive sign, but the company should continue to focus on improving its working capital turnover to drive overall financial performance.
Peer comparison
Sep 30, 2023