Ethan Allen Interiors Inc (ETD)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 614,649 | 646,221 | 791,382 | 817,762 | 685,169 |
| Total current assets | US$ in thousands | 309,933 | 332,683 | 359,453 | 346,749 | 295,279 |
| Total current liabilities | US$ in thousands | 152,851 | 153,696 | 163,097 | 215,643 | 223,902 |
| Working capital turnover | 3.91 | 3.61 | 4.03 | 6.24 | 9.60 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $614,649K ÷ ($309,933K – $152,851K)
= 3.91
The working capital turnover ratio for Ethan Allen Interiors Inc. demonstrates a declining trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 9.60 in 2021 to 6.24 in 2022, representing a significant reduction in the company's efficiency in utilizing its working capital to generate sales. This downward movement continued into 2023, with the ratio declining further to 4.03, and reached an even lower level of 3.61 in 2024. Although there was a slight increase to 3.91 in 2025, the ratio remained substantially lower than the levels observed in 2021.
This declining pattern suggests that Ethan Allen's efficiency in converting working capital into sales has diminished over the period, potentially indicating increased working capital investment relative to sales, or decreasing sales turnover in relation to working capital. The persistence of this trend warrants further analysis of the underlying operational and financial factors, such as changes in inventory levels, receivables, payables, or overall sales performance.
Peer comparison
Jun 30, 2025