ExlService Holdings Inc (EXLS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,839,380 | 1,619,020 | 1,412,250 | 1,106,200 | 951,676 |
| Total current assets | US$ in thousands | 795,189 | 679,673 | 612,794 | 578,144 | 609,278 |
| Total current liabilities | US$ in thousands | 290,116 | 326,403 | 277,946 | 495,686 | 221,078 |
| Working capital turnover | 3.64 | 4.58 | 4.22 | 13.42 | 2.45 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,839,380K ÷ ($795,189K – $290,116K)
= 3.64
Based on the data provided for ExlService Holdings Inc, the working capital turnover has shown variability over the years.
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates more effective utilization of working capital.
In December 2021, the working capital turnover ratio was significantly higher at 13.42, suggesting that the company efficiently converted its working capital into sales during that period. This could indicate strong management of inventory, receivables, and payables.
In the subsequent years, the ratio decreased but remained above 4, indicating continued efficiency in working capital management. The ratios for December 2022, 2023, and 2024 were 4.22, 4.58, and 3.64 respectively.
Overall, the company has generally maintained a healthy working capital turnover ratio, demonstrating effective management of its working capital to support sales growth and operational efficiency.
Peer comparison
Dec 31, 2024