ESCO Technologies Inc (ESE)
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 | 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 | 810,997 | 805,425 | 799,855 |
| Total current assets | US$ in thousands | 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 | 495,194 | 450,206 | 435,959 |
| Total current liabilities | US$ in thousands | 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 | 251,635 | 199,736 | 201,945 |
| Working capital turnover | 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 | 3.33 | 3.22 | 3.42 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $959,068K ÷ ($603,202K – $304,693K)
= 3.21
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.
Esco Technologies, Inc.'s working capital turnover has fluctuated over the past eight quarters. In Q1 2024, the working capital turnover ratio was 3.25, showing a decline from the previous quarter's ratio of 3.59 in Q4 2023. This decrease may suggest a slight decrease in efficiency in utilizing working capital to generate revenue.
Comparing the current ratio to historical performance, Esco Technologies, Inc. has shown varying levels of efficiency in managing working capital. The highest turnover ratio was seen in Q1 2023 at 3.66, indicating a peak in efficiency during that period. However, there was also a lower ratio of 3.08 in Q3 2022.
Overall, these fluctuations suggest that Esco Technologies, Inc. may need to focus on optimizing its working capital management to maintain consistent efficiency in generating revenue from its working capital resources. Further analysis and monitoring of working capital turnover trends will be essential for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023