Ethan Allen Interiors Inc (ETD)
Working capital turnover
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 | Sep 30, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 646,141 | 664,729 | 704,624 | 740,509 | 791,146 | 1,224,074 | 1,235,417 | 1,240,349 | 1,208,177 | 766,074 | 745,377 | 716,110 | 684,846 | 598,414 | 571,226 | 566,974 | 589,837 | 682,187 | 710,242 | 732,820 |
Total current assets | US$ in thousands | 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 | 229,952 | 287,328 | 199,440 | 232,831 |
Total current liabilities | US$ in thousands | 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 | 138,978 | 146,863 | 137,442 | 159,899 |
Working capital turnover | 3.61 | 3.91 | 3.81 | 3.94 | 4.03 | 6.89 | 7.59 | 8.65 | 9.22 | 6.94 | 7.98 | 10.52 | 9.59 | 9.18 | 9.77 | 12.72 | 6.48 | 4.86 | 11.46 | 10.05 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $646,141K ÷ ($332,683K – $153,696K)
= 3.61
The working capital turnover ratio for Ethan Allen Interiors Inc has fluctuated over the past few quarters, ranging from a low of 3.61 to a high of 12.72. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support sales growth. In this case, we see a positive trend in the ratios from Dec 31, 2020, to Jun 30, 2021, where the ratio steadily increased from 9.77 to 10.52, indicating improved efficiency in working capital management.
However, the ratio experienced a significant spike to 12.72 on Sep 30, 2021, suggesting a potential temporary surplus in working capital relative to sales during that period. This spike could be attributed to various factors such as changes in inventory levels, receivables management, or payment terms with suppliers.
Subsequently, the ratio declined but remained relatively high, indicating that the company continued to effectively utilize its working capital to support sales.
Overall, analyzing the working capital turnover ratio provides insights into the company's efficiency in managing its current assets and liabilities to drive sales growth. It is essential for Ethan Allen Interiors Inc to sustain a balance in working capital utilization to support its operating activities effectively.