ESCO Technologies Inc (ESE)
Working capital turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,011,553 | 989,298 | 978,104 | 959,068 | 947,264 | 931,693 | 903,174 | 880,215 | 852,649 | 802,596 | 765,775 | 728,079 | 714,210 | 717,564 | 707,792 | 720,752 | 727,651 | 756,279 | 782,930 | 797,707 |
| Total current assets | US$ in thousands | 668,649 | 652,895 | 621,922 | 603,202 | 581,095 | 593,822 | 570,140 | 534,771 | 572,622 | 553,465 | 513,398 | 484,802 | 466,154 | 470,865 | 428,100 | 452,245 | 443,293 | 513,484 | 511,600 | 498,298 |
| Total current liabilities | US$ in thousands | 349,854 | 311,207 | 288,930 | 304,693 | 314,651 | 308,951 | 297,055 | 292,760 | 318,129 | 292,095 | 277,795 | 265,874 | 274,995 | 253,392 | 246,583 | 254,623 | 255,484 | 242,415 | 251,029 | 252,030 |
| Working capital turnover | 3.17 | 2.90 | 2.94 | 3.21 | 3.56 | 3.27 | 3.31 | 3.64 | 3.35 | 3.07 | 3.25 | 3.33 | 3.74 | 3.30 | 3.90 | 3.65 | 3.87 | 2.79 | 3.00 | 3.24 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,011,553K ÷ ($668,649K – $349,854K)
= 3.17
The working capital turnover ratio for ESCO Technologies Inc has shown some fluctuations over the past few quarters, ranging from a low of 2.79 to a high of 3.90. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio typically indicates better efficiency in managing working capital.
In the most recent quarter, Sep 30, 2024, the working capital turnover was 3.17, which indicates that the company generated $3.17 in sales revenue for every dollar of working capital invested. This was a slight decrease from the previous quarter but remained relatively stable overall.
Over the past few quarters, ESCO's working capital turnover has generally been in the range of 3.00 to 3.90, suggesting that the company has been effectively using its working capital to support its sales activities. However, there were some dips in the ratio, such as in Sep 30, 2020 and Mar 31, 2020, which may indicate potential inefficiencies in managing working capital during those periods.
Overall, ESCO Technologies Inc's working capital turnover reflects reasonably efficient utilization of working capital to generate sales revenue, with some fluctuations observed over time. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management effectiveness.
Peer comparison
Sep 30, 2024