Ethan Allen Interiors Inc (ETD)
Working capital turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 614,649 | 622,924 | 626,650 | 636,666 | 646,221 | 664,964 | 704,859 | 740,744 | 791,382 | 833,690 | 845,033 | 849,965 | 817,762 | 766,402 | 745,705 | 716,438 | 685,169 | 598,414 | 571,226 | 566,974 |
| Total current assets | US$ in thousands | 309,933 | 361,392 | 316,196 | 313,352 | 332,683 | 326,310 | 325,959 | 352,798 | 359,453 | 351,949 | 338,406 | 351,694 | 346,749 | 340,849 | 316,244 | 300,842 | 295,279 | 291,120 | 245,928 | 232,461 |
| Total current liabilities | US$ in thousands | 152,851 | 157,786 | 150,079 | 157,315 | 153,696 | 156,109 | 140,930 | 164,942 | 163,097 | 174,356 | 175,715 | 208,290 | 215,643 | 230,437 | 222,817 | 232,767 | 223,902 | 225,946 | 187,478 | 187,889 |
| Working capital turnover | 3.91 | 3.06 | 3.77 | 4.08 | 3.61 | 3.91 | 3.81 | 3.94 | 4.03 | 4.69 | 5.19 | 5.93 | 6.24 | 6.94 | 7.98 | 10.52 | 9.60 | 9.18 | 9.77 | 12.72 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $614,649K ÷ ($309,933K – $152,851K)
= 3.91
The working capital turnover ratios of Ethan Allen Interiors Inc. demonstrate a general declining trend over the observed period from September 30, 2020, to June 30, 2025. Initially, the ratio was relatively high at 12.72 times as of September 30, 2020, indicating that the company generated significant sales for each dollar of net working capital.
Between September 2020 and December 2021, the ratio experienced a significant decrease, reaching a low of 7.98 times as of December 31, 2021. This decline suggests a reduction in the efficiency with which the company utilized its working capital to generate sales or a shift in the working capital structure.
From the beginning of 2022 onwards, the ratio continued to decline more gradually, reaching its lowest point at 3.61 times as of June 30, 2024. This sustained decline indicates a persistent decrease in sales generated per unit of working capital, implying either a core efficiency challenge or a strategic change affecting working capital management.
Notably, there is a slight uptick observed in the ratios in the later periods, including a marginal increase to 4.08 times as of September 30, 2024, reverting slightly to 3.91 times by December 31, 2024, and a modest rise to 3.91 times again by June 30, 2025. These fluctuations may reflect transient improvements in operational efficiency or changes in working capital components.
Overall, the pattern indicates a substantial decrease in Ethan Allen's working capital turnover over the period, transitioning from a high efficiency regime to a period characterized by lower sales generation relative to working capital investments. This long-term downward trend could be attributed to various factors such as changes in sales volume, shifts in inventory or receivables management, or broader market and operational conditions affecting the company's working capital efficiency.
Peer comparison
Jun 30, 2025