Ethan Allen Interiors Inc (ETD)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 646,145 | 791,139 | 817,618 | 684,831 | 589,837 |
| Total current assets | US$ in thousands | 332,683 | 359,453 | 346,749 | 295,279 | 229,952 |
| Total current liabilities | US$ in thousands | 153,696 | 163,097 | 215,643 | 223,902 | 138,978 |
| Working capital turnover | 3.61 | 4.03 | 6.24 | 9.59 | 6.48 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $646,145K ÷ ($332,683K – $153,696K)
= 3.61
Based on the working capital turnover ratios of Ethan Allen Interiors Inc over the past five years, we can observe a declining trend. The working capital turnover ratio has decreased from 9.59 in 2021 to 3.61 in 2024.
A high working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate revenue. Therefore, a declining trend in this ratio may suggest that the company's efficiency in utilizing its working capital to generate sales has decreased over the years.
It is important for Ethan Allen Interiors Inc to closely monitor and manage its working capital levels to ensure optimal efficiency in operations and maximize profitability. Further analysis of the company's working capital components and overall business operations may provide insights into the factors contributing to this declining trend in the working capital turnover ratio.
Peer comparison
Jun 30, 2024